$150m (+22.5m) sen unsec cb coming tonight from CITI/BOA/WFC/JPM
Terms: 4¾-5¼% up 22½-27½%, Div Pctn >.5 qtr. UOP=originate & acq commercial mrtge loans. $740m mortgage REIT. Recent comps in CB mkt;RWT=mix of comm/res mrtge loans, came 02/13 4.63% up 20%, ICS now~480 (25vol). IVR=mixed pfolio also, came 03/13 5% up 15% & traded poorly. Now ~94 w/6.8% up 46% optics.ICS now ~640 (28%) We’d assume L+600 for 5y BXMT.ADV=168k, noleaps, 1y 100d vol=12% brw is thin & ~75bp. Given brw & stk illiquidity, we’ll use 15% (more than generous). Theo=94.5/96/97.5. This structure is not for hedge funds; Low vol/thin brw/dvd pctn gap (currently .27qtr but co has said that it may pay .44 next qtr). Not even an obv eqty switch but will need some equity x/over and l/only sponsors