$120 (+18m) sen unsec cb coming tonight from UBS. Terms: 5yr, 4-4.5% up 22.5-27.5% full pctns. UOP=fund i/p litigation & gcp. T+1 cos deal w/get pulled if Echostar wins case b4 settlement date. This is obv med/term driver. Had edge w/jury trial/appeal. Stock spiked to $18 on appeal win but tanked > rare en banc review decision. worst case = back 2 district court = more cost & uncertainty. Next few months key. Partnered w/CHTR, VMED, RCN & Suddenlink.
PF Cash = 329m
Debt =120m
LTM FCF = -65k
EBITDA = -55k
No debt & should turn CF +ve w/lower legal costs.
Equity story but 4 model’s sake we’ll use L+900 & 35%.
Theo = 105.7
Listed volatility bid on back of catalyst, equity mkt interest obvious in our mind. Good way to get long story, don’t freeze or pause BUY