*********** $200m (+30m) sen cb coming tonite from JPM/BOA.Terms:7y,2⅝-3⅛% up 27½-32½%, S/C 4y @ 130% (m/whole),pctns.UOP=finance Cangene acq. $960m pharma specialising in biodefense vaccines (has the only FDA approved Anthrax vaccine (Stk +100% from 04/13 low).Acq exp 2 close 1Q 14 & will help diversify product mix (will add 3 more products incl within the US strategic stockpile). Combined Co exp 2 have PF rev >$430m, pretax op/income of $55m. Pre-acq PFcash=160m,debt=270m,LTMebitda=62m,lev=4.3x. We’d assume L+600.
ADV=meagre 165k, no leaps w/1y 100d=33%. Low ADV/-ve gamma=dscnt vol to 30. Theo=99.5/101.7/104. In short; both h/funds & l/only will want exposure 2 the eqty story, albeit this is much more of a directional play than any arb set up given lack of ADV.