$575m (+75m) sen unsec cb coming from MS/JPM
Terms: 5y 0.75-1.25% up 35-40%. UOP = $100m buyback/gcp/terminate $250m revolver
Partial happy meal.
Great to see JDSU back. Co redeemed a large portion of 1% w/rest put back 05/15/13.
PF Cash = 952m
Debt = 214m
LTM ebitda = 214m
FCF = 100m
Q4 results +f/y guidance were below est but as long as co does not use cash on acq, it is a solid credit (see credit color)
We’ll use L+350. ADV = 4.6m, 01/15 same delta calls 45 iv. We cap vol normally at 35% assuming no credit hedge but w/cash and biz as it is now, premium expansion on way down = accurate assumption. We’ll use 38%. Theo = 103.2
We like the stock (18 traget) Both long and hedge will have demand. UBS index inclusion a given plau great cap structure set up for hedgies.