$200mn (+30mn) sen unsec cb coming tonight from JPM/BOA/WFC/DB.
Terms: 5y, 4.875-5.375% up 15-20%, div ptcn > 35c. UOP= GCP and repay debt. As we know, invests in debt/equity of middle mkt cos (pfolio: 40% 1st lien, 36% sub, balance eqty & other). We’ll use L+500 and 20%iv (high div stk=low vol), Theo 97.74/99.34/100.98. Existing CB (remember Jan) trades 3pts thru’ theo due
to IG-rating (BBB), high bondfloor and profile appeal. A trend isn’t always a friend (think multiple REIT issues)but this works for us. Model (like existing) doesn’t love it, but we think >BUY<, preferring MIDS (11% from SBV, 17.5% premium). Should see some convergence btwn existing/new, price point probably doesn’t incentivize o/r switchers. (srce; bbg/co filing)