All about converts

$75m (+10m) 144a senior cb pricing tonight from JPM/JEF.
Terms: 20 yr, 2.75-3.25% up 30-35%, nc4-sc3@130% w/cpn make whole, puts 7/10/15, protections. UOP = acq financing & gcp. Altra Holdings is a leading manufacturer of mechnical power transmission products w/leading positions in niche markets. Cyclical biz. Sales & margins seen some recovery.
Modest FCF+ & ok liquidity. But tiny company: $575 market cap.
PF Cash = 86m
debt = 292
LTM EBITDA = 80m
LTM FCF = 26
lev = 3.7x
Acquiring Danfoss Bauer for $60m
Exp more acq. CBs rank behind 2nd lien ’16 which trade L+400.
Use 600 here at least & 30 vol.
Mid/cheaps 98.75/101
Only takes a few to like it tho not a reason for us to buy. Credit too tight for small B1 co.