$100m (20m) sen unsec cb coming tonight from DB. Terms: 5yr, 3-3.5% up 25-30%, full pctns. UOP=gcp/acq. Core biz rev up 66% YOY in Q1 (ophthalmic & hospital drugs) with a solid pipeline (20 ANDAs on FDA file w/est mkt value of 3b w/20 expected in next 6 months). Historically, growth has been thru acq (last acq = AVR w/$20m sales in Q1) & chairman has been the prime lender to co. Liq has imprived when JV w/Strides sold all ANDAs to Pfizer for $63m in 12/10 although still v/concentrated (64% of sales to 3 dist)
We’d assume L+750
Buyers will believe in equity story. Not a model game. HY mkt eating CB lunch at the moment, small deal with followers.
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