$250m (+50m) sen unsec cb coming tonight from CITI/JPM/MS. Terms 5y, 1.75-2.25% up 35%-40%, 3y put, full pctns (div adj > 0). UOP=gcp/working cap. Deja vous; a Chinese tech stk @ all time high & +2.7 ytd issuing a 5y/3y put structure.
Stated PF Cash = 565
Debt = 701
LTM EBITDA = 314
FCF = 210
Lev = 2.2
SINA = L+540 (38 vol)
QIHU = L+597 (40 vol)
CTRP L+546 (40 vol)
So if mkt deems this a L+500 credit then SINA/QIHU/CTRP all should trade higher. We’ll assume L+600. ADV 700k. no leaps but s/dated listed 70iv. 1y 100d = 50%, we’ll assume 40 vol. Usual brw games in mkt w/quotes btw GC to -2. We’ll assume 1%. Theo = 105.2 or L+880.
Model likes 5t/3y put structure & arguably mkt is being compensated 2 own over SINA/CTRP/QIHU.