All about converts

$110m (16m) sen sc coming tonight from JPM. Terms: 5yr, 3.5-4% up 30-35%, s/c 4 yr @130% & hc 5 yr, full pctn, cncrrnt 1.15m stock sale (wont receive proceeds). UOP = gcp/buyback 5.375% ’13 old cb issued 2008 (5.375 up 34% w/strike @15.93). Illiquid & fair/straightly rich (120.5 vs 20.49 = L+410 for 2 yr). $940 mkt cap w/1 product (Ominpod). Approveal of version 2 poss/in 2011. N/hood diabetes acq for $68m w/expanded product cuetomers.. Co expects c/f/b/e YE11 & have up’d FY rev guidance to $160m. Will expand 2 supply EUR & Canada this yr. We’ll use L+800 (CCC). Adv = 310k no leaps, so use 32%. Not model trade. Theo = 99.375. Small deal, will be illiquid w/few concentrated holders who believe in growth story. If you don’t then u’ll think it is a piece of D