$1.3B (200m) sen cb coming tonight from GS. Terms: 5y, 0.75%-1.25% up 27.5-32.5% full pctns. UOP = cb hedge/fund $1B capital return program/stock buyback. HAPPY. $8.6B semiconductor, founded in 1993 w/stk +27% ytd.
PF Cash = 4B
Debt = 1.3B
LTM EBITDA = 750m
FCF = 468m (post dividend payments)
Lev = 1.7x
We’d assume 25 vol.
Theo = 100.6. Balanced profiles in semi conductor space under represented in CB universe (90 SBV/42d) so we think the market will be receptive However, pricing is now becoming a factor in recent jumbo performance; YHOO (-0.5 pt on swap first day), SNDK came 10/13 0.5 +35% now x/par 30.9% (we think a buy here). This will be the 4th tech jumbo in 1 month, pricing should reflect this.