$125m (+18.75m) sen unsec cb coming 2night from JPM. Terms: 7yr, 4.5-5% up 20-25%, nc4 pctns. UOP=KRYSTEXXA. > 09/10 FDA approval co failed to sell themselves hence the capital raise. Imminent US launch w/EU filing. Co needs liquidity (w/out cb, cash will be flat by mid yr.)
PF Cash = 200m
Debt = 125m
LTM ebitda = -47m
FCF = -86m
yrs cash = 2.3
Like DNDN, those that believe will see this as tighter spread/lower vol in time & those like us who are not experts will avoid.
Historic financials & model r not relevant.
For those who do care, L+900/35 vol & 50bp brw blended = Theo = 103.4
MKT likes these names (DNDN gr8 example). We don’t like call b4 maturity but if u believe then b/e right there. Too much risk for us SAVVY would push 4 cheaps
Specialty biopharma co focused on commercializing Krystexxa, treatment for chronic gout refractory to current treatments
PF Cash $200m
PF Debt $125m
LTM EBITDA -$47m
LTM FCF -$86m
Yrs cash 2.3 yrs
Mkt cap $652m
SVNT received FDA approval for Krystexxa in Sep 2010 & planned to sell themselves then. That didn’t work out so they decided to go it alone w/a US launch, expected in few wks. Also pursuing EU filing. Have 1 other tiny product & no pipeline. Co would be out of cash mid year w/o convert deal. Estimaes vary on size of patient pop for Krystexxa, questionable if/when co becomes profitable. Safety issues & reimburse are other risks.
Our assigned spread L+900