$250m (25m) sen unsec cb coming tonight from JPM. Terms: 30 yr 2.125%-2.625% up 10-15%, s-call yr11 @150%, full pctns. HAPPY. UOP = repay term/loan & stk buy back. Similar structures in mkt = MCHP, VRSN, XLNX. MCHP came 2.125% up 15% (full div pass thru) now x/par up 7%, VRSN came 3.25% up 20% now c/par 21% & XLNX came 3.125% up 20% now @100 on 12%. H/F orientated space (o/r do play but stk specific ie VRSN, XLNX). In short, if u have b/sheet & like b/e trades then you will like this. Using L+600 & 30 vol theo = 105.4. Being told mkt may use higher vol but like MCHP the model is redundant. In reality, mkt is v/split on structure. Not obv for cb o/r’s (stk 52 wk high, 94d & 32 sbv) but poss eq switch. Small deal will get done. Push mids or better.
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