$325m (48.75m) reg senior cb pricing tonight from BAS/GS
Terms: 6 yr bullet. 2.5-3% up 27.5-32.5%, protect. UOP =gcp & repurchase olds 2.25% ($230m). NUVA is a medical device company focused on spinal surgery mkt. Mkt cap = $1.3B. Their competition is from much larger MDT/SYK. B/S is decent: PF Cash = $311m, PF Debt = $325m, LTM FCF = +24m.
Olds trade tight @200 for 2013. We’ll use L+575 for 6 yr.
See credit color
2 yr 90d 50/10 ile= 48/32. Use 30v for 6 yr
Stk brw is not normal tho exp to get better.
Use 100bps fee = theo = 100. Stk -5% today so you may get a pop, but 2.5m shares to be shorted if 1/2 go to HFs (65d) ORs will note stk perf & 25 ps from floor. Takes backbone to pay anything better than Cheaps
Medical device company focused on teh spinal surgery market
PF Cash = $311m
PF Debt = $325m
LTM EBITDA $70m
LTM FCF $24m
Leverage 4.6x
Mkt Cap $1.358m
Small co focused exclusively on spine. Competes against much larger cos incl Medtronic & Strykeer. Nearly all sales from US though looking to expand to Japan. Spine mkt challeges incl reimbursement issues, lower volumes, & pricing pressures. Has generated modest +FCF in last 2 yrs. Large cash balance to be drained by milestone payment to Cervitech ($33m), purchse of add’ shs of Progentix ($45m), & MDT litigation judgement ($60m). Co could also be looking to do acquisitions
Our assigned spread 575