All about converts

$400m (60m) sen unssec cb coming this morning from Citi. Terms: 7yr bullet, 3% up 30%, full pctns. UOP = 2.25% 12 reupurchase/hedge/gcp. Will keep this short. Pls dont rely upon model, rely upon the track record of 7yr structures on credit names; MU A, ILMN, CX, BKD. Actually, look at 5yr credit names of late; JRCC, DNDN, REGN etc. Common theme=nuke down on heavy delta & zero stk bought back. Buy this co u like equity story (Benlysta) not cuz model likes it. However, for those who will model we’ll assume L+750 (B-) & 35 vol (2 yr 90d 10/50%ile = 32/40, ADV = 4m, listed = 60 iv +). We’ll take stk to 9.86. Theo = 101. May be some equity interest but this is the wrong mkt to bring this credit/strucutre. Mkt needs paper but this is not it. AVOID