$125m (18.75m) 144a sen cb pricing tonight from ML/DB/CNTR. Terms: 5 yr bullet, 4.25-4.75% up 17.5-22.5%, prot. UOP = capped call & possible M&A. $2.2B mkt cap. Street broker specializing in OTC products; was originally part of Cantor Fitz which still holds large stake. Low leverage, +FCF, decent liquidity. Recently signed new revolver at L+300, unsec 2 yrs. Exp BBB-/Ba1 on convert. MF which is smaller mt cap at $1.2B trades at L+500. We’ll use L+450 here. 2 yr 50/10ile vol has been 40/32 but ADV low (600k per day). We’ll dsct for 5 yr to 27v. Stk brw not normal. Using 100bps, theo = 101.5
Small deal, usual dynamics apply. Try for cheaps.
Leading global inter-dealer broker
PF Cash $411m
PF Debt $311m
LTM EBITDA $209m
LTM FCF $119m
Leverage 1.5x
Mkt Cap = $2.172B
BGCP one of five larger inter-dealer brokers. Originally part of Cantor Fitzgerald & They remain strategic holding w/large voting interest. Ops down during 08/09 but have recovered. FCF remains positive & liquidity good w/cash & new $300m rev (unsec, L+300, 2 yrs). Announced plans to acquire Newmark, corp real estate advisory, new businsee (terms unknown). Could be looking for more acq. Co expects to use more cash for divs, share repurchase & unit redemptions. Leverage low.
Our assigned apread L+450