$500m (+75m) sen unsec cb coming tonight from CITI/MS/JPM.Terms:
10y, 1½-2% up 17½-22½%, full pctns. Holdco stakes=52% SIRI, 100% Atlanta Braves (+5 minor league teams), 27% CHTR, 27% LYV.
PF cash=1.26bn, debt=4.7bn (3.18bn = SIRI/XM debt) & CB will be sub. Est ’13 EBITDA=1.29bn, FCF=250m. We’d assume BBB-/BB+ L+250 for 10y. $17bn mmkt cap, ADV=660k, no leaps, 6m 100d=20.9%, stk is clearly not volatile (we heard a ridic/argument that vol from SIRI stk should be represented in LMCA vol. Last time we looked SIRI was a 25vol stk).We’ll be generous & use 20% for 10yrs.Theo =99.3/102.6/106. Simple o/r b/e=8.75y/11.4 cheap/mid, JUXTA pos= l/dated, low 79 SBV not obv for O/R’s vs UBS index inclusion.Its fun to stay at the LMCA but only on the right terms.