All about converts

$125m (18.75) sen unsec cb coming tonight from GS. Terms: 5yr, 1/75-2.25% up 27.5-32.5%, full pctns. UOP = $200m stock buyback. $600m data storage co w/stock -30% in last 2y. Co recently initiating an aggressive cost savings program (est $30 this fiscal yr & will run 2 YE15). Along w/some exec/level changes & stock buy back they hope 2 appease activist s/holders & turn corner. Stock upgraded > news (cost cuts/capital plan & c/flow from Fiber channel biz funding Ethernet biz w/generate EPS growth. We’ll use L+450. 33% of outstanding w/be gone so historical ADV/vol = moot point. There will be o/r demand but will be harder for h/f 2 monetize vol. We’ll use 25%. Theo = 100. Small. Will get done BUT with 6B recent global issuance + secondary weakness, you should get price sensitive.