$175m (+25m) sen unsec cb coming tonite from BOA/JPM/BARC.Terms:
3y,1-1½% up 40-45%,full pctns. UOP=1.7m stk buyback/redeem 5.7% str8. HAPPY MEAL. Existing pari 3y 3% CB came 11/12 w/42½% prem
~125.75 vs 12.37 = 2.4%cy up 19% & backs out L+318 (30vol). Pari
5⅞%16 str8 ASW ~L+275 & 5.85% 17 ASW ~L+330. We’d assume L+300 for 3y. ADV=1.1m, no leaps & near dated listeds ~28/32iv.1y 100d 28vol. We’ll give this the benefit of the doubt & use 30vol.Theo =100.05/101.25/102.5. Existing 3% CB primarily in o/r hands now & would expect similar support w/this (yield enhanced eqty with a 92.5 theo SBV). Unless you are directional v/hard to see how u make money esp given duration/premium. O/R support in book and beyond is key. Stat for you, $7bn global issuance in last 7 days