$125m (18.7m) sen unsec cb coming tomorrow from MS/GS. Terms: 7y, 3-3.5% up 30-35%, full pctns. Concurrent 12m stk placement. UOP=gcp/working capital. What a turnaround! Stk +2.2x in LTM w/co signing the Sapphire Substrate manufacturing pact w/APPL just 1m ago. Existing 3% 2017 (3.82y) back out L+40 (40%), L+241 (35%). A diff $px/profile so we do not expect much weakness.
FY14 est EBITDA = 17m
FY15 = 152m
So you can see the play here.
We’ll assume L+750 for 7y. ADV = 4.1m
Listed/historic vol obv very high but given –ve credit convexity on way down, we’ll cap @35%
Brw 75 bp at moment but we expect GC as shares settle. Theo = 102.8
Expect x/over
1/only demand w/low hedge allos. Get access to apple via yield enhanced equity.