$150m (+22.5m) sen unsec cb overnight from JPM/MS/WFC. Terms: 5yr 4.875-5.375% up 10-15%, full pctn (div>0.166). UOP = paydown debt/gcp $800m inv co incorporated in 2008. Credit assumptions btw L+450 to L+500. However, they renegotiated 2013 term loan in 09/10 @ L+350.
ARCC bigger co, BBB rated adn bonds back out L+400 using 22v. We hear Fitch BBB- rating soon but we’d use L+600. Again, not model trade b/c mkt will be o/r v/light cos 1) stk down & 2) div & 3) shoprten b/e. However, to humor model we’ll use 22 vol. Theo with stk unch (now below $13) 75bp brw (not GC) = 96. Look we’re realists: small deal w/strong u/w, some may evern use tighter spread but why not own 9% up 0% (no obv switch) no doubt it will get done & poss trade up w/stock.
Not for us.