$150m (+22.5m) sen unsec cb coming tonight from BARC. Terms: 5y, 2.5-3% up 27.5-32.5%, full pctns
UOP = call spread / gcp
co is small but its intentions are clear (press release mentions future acq & 10K states its search for a partner w/complimentary tech). Rev = royalties from patent license agreements (portfolio of 1300 US and 7500 non us patents), top 4 custies = 61% of 2010 rev (samsung/NEC/Sharp/LG). Recognizes rev from 50% of 3G sold world wide.
PF cash = 688m
debt = 151m
LTM ebitda = 258m
fcf=131m
lev = 0.6x
good biz
we’d assume BB & L+400. Small OI in LEAPS but 45 iv bid, low ADV = 285k
3y 90d 10/50ile 41/55%
We’ll use 35%. Brw hough but will imprive
We’ll use 62.5 bp = 106.75
Small deal 4 equity mkt.
Hedge allocations will be light.
I’d CC everyone to BUY