$90m (30m) 144a senior cb pricing tonight from MS. Terms: 5 yr, 6-6.5% up 20-25%, 3 yr put, protections. UOP = buyback $62m of $90m outstanding 6% which are puttable next June. Balance of proceeds for NPCC production capacity expansion. Chinese manfacturer of nano-precipitated calcium carbonate (NPCC) used in a varity of products (primarily tires & PVC building materials). Aggressively expanding. Most sales in China. Small company (mkt cap $300m). We’ll use L+1250.
We will cap vol @35. Brw ranges from bad to horrible. We’ll use neg 6% – some have much worse. On the cheap ends, these are worth 101.25, Very limited audiance. Like the old ones, these will disappear. For most, an AVOID
Chinese mfg of nano-precipitated calcium carbonate (NPCC) used as filler in tires, pvc building, paper and plants
PF Cash $146m
PF Debt $118m
LTM EBITDA $49m
LTM FCF $31m
Leverage 2.4x
Mkt Cap $279m
SDTH is small Chinese co. Their primary mkts are tires & pvc building materials. Nearly all sales are within china. Tires are 33% of sales and could be under pressure as restrictions are put on bias tire prod next few yrs. Expanding capacity aggressively, will go from 260k to 300k mkt by year-end & expect 500k by 2013 w/$160m of cap-ex required. Others adding capacity as well, could lead to pricing pressure down the road.
Our assigned spread L+1250