$150m (+22.5m) sen unsec cb coming tomorrow from CS/DB.Terms: 5y 1-1½% up 27½-32½%, S/C 4y @ 130% (stk make-whole), full pctns UOP=gcp/cap ex. $1bn data pctn biz founded in ’02 w/a formidable list of competitors; EMC/SYMC/CSCO/GOOG/MSFT/INTC/HPQ w/an avg mkt cap of $146bn. Stk 144% ytd due largely to the conversion to cloud & t/o speculation.PF cash=217m, debt=153m, LTMebitda=(16m)
w/FY15 est EBITDA=5.25m so possibility co will be 30x levered 2y out. We’d assume L+450. ADV=240k, no leaps, 1y 100d=43%. Given lack of liq we’ll cap vol at 30%. Theo=98/100/101.9. Not as good as some of the other cloud cap structure set ups, given mkt cap/ smaller cash position. Small deal in popular sctr, it will have sponsorship but w/primary pick up there should be px sensitivity