$150m (22m) sen unsec cb coming tomorrow night from JPM/DB. Terms: 7y, 2.25-2.75% up 30-35%, s/c @130% make whole, full pact. UOP = $30m stk buy back/$7.2m = pay off facility/gcp
Online real estate research engine founded in 2005. Stock was up 220% to Sept but is now 42% off high with housing market slowdown.
PF Cash = 181m
Debt = 150m
With FY 14 EBITDA est =-2m
Lev = 3.3x. We’d assume L+675 for 7 yr ADV = 740k, 01/16 calls 50 bid. 1y 100d = 62. Again, downside –ve gamma risk caps our vol at 35%. Brw = 50-75 bps, we’ll use 50 bp.
Theo = 99.6. Small deal will help but primary has been heating up since nov with 4 deals in last 2 days alone. New deal rarity premium gradually eroding with market becoming more price sensitive.