PF Cash $1.795m
PF Debt $720m
LTM EBITDA $902m
LTM FCF $743m
Leverage 0.8x
Mkt Cap $5.897m
LRCX has leading mkt share in etch mkt, used in memory, logic, & micro electromechanical system devices. Ops were negatively impacted in 08 adn 09 when EBITDA and FCF turned negative. Had strong recovery in 2010, continues into 2011. Picking up market share, though product focus is very narrow. Compete against applied materials and Tokyo Electron, much larger & diversified cos. Non-convert debt is small amount of cap leases & bacnk loans.
No revolver, but significantly cash supports liquidity.
Our assigned spread L+275/325
$700m ($100m) sen unsec 2 tranche cb coming tonight from JPM/GS Terms: $350m 5yr, 0.5-1% up 27.5-32.5%. $350m 7 yr, 1.25-1.75% up 27.5-32.5$, full pctns. UOP=stk buyback, cb hedge. Mkt leader in etch S&P just upgraded to BB+ (outlook +ve), strong rebounf in 2010 w/ebitda and fcf turning +ve. SOlif credit.
theo – 102.2
what our mkt needs, balanced & liquid that appeals to both o/r (good profile w/prob index inclusion) & hedge (can own on mids without praying for greater fool.