$100m (15m) sen unsec cb coming tonight from JPM. Terms: 7yr 3.5-4% up 22.5-27.5%, full pctns, concurrent 1m (+150k) stk placement UOP = gcp. $1B heart pump implant manufacturer which competes w/THOR’s Hertmate product. Co public <2 yr w/recent approval for Europe. Estimate = co to turn profitable in 2013 if Bridge to transplant hits mkt 1H12 (expected FDA filing in Dec). CB only debt, we’d use L+850. ADV < 100k & brw thin ~2 but equity offering will improve both. Purpose of model irrelevant, w/binary small deals you are either a believer or not in the stroy. Brw improvement, stk placement & x/over interest big factors also. We expect all to be +ve 4CB we don’t like 7yr
Mfg of miniaturized implantable heart pumps to treat patients suffering from advanced heart failure.
PF Cash $190m
PF Debt $100m
LTM EBITDA -25m
LTM FCF -26m
Yrs cash = 7.3 yrs
Mkt cap = 1.233
HTWR is a small start up med device company that has been public < 2 yrs. Received approval in 02/09 to sell their Heartware system in Europe, began sales 03/09 but still quite modest. Expect to file for FDA approval for bridge to transplant this month. Could launch in US early 2012 & could become profitable 2013. Have trials ongoing for destination therapy, but will be yrs before results. THOR’s heartmate is primary competition
Our assigned spread L+850