$230m (+34.5m) sen sub cb pricing tonight from JPM/MS. Terms: 7yr bullet, 1.75-2.25% up 27.5-32.5% prot. UOP = up to $175m to redeem straights & cb hedge & gcp. Chart Insutries makes cryogenic & low temperature products for a variety of apps (gas, chemical, biomed). $1.7B mkt cap. Majority of Rev from energy segment, but they are diversifying. Have been acq butliquidity ok. PF Cash = 200m, debt = 289m, 3x levered. We’ll use L+500 (see credit color). This stk can move: 2 yr 90d = 55/50. Capping vol at 35, theo = 102. As we’re all aware, if you can’t captivate an o/r, you are pricing off model and tape, so we’ll be cool if you go in on cheaps on this one.
Equipment for low-temperature & cryogenic apps for energy, industrial gas, & biomedical customers
PF Cash $200m
PF Debt $289m
LTM EBITDA $95m
LTM FCF -10m
Leverage 3x
Mkt cap = 1.648b
GTLS has seen recovery over last yr, benefit from shift toward nat gas. Most rev still from energy, but has diversified, 25% biomedical & intl growing w/ops in czech rep & china. Have been acq & have announced #39m acq of EU mobile LNG. Co typically generates +FCF for full yr & has focused on reducing debt, no divs or stock repurchase has helped. OKay liquidity w/$109 avail rev. Conv rank behind secured rev & term loan.
Out assigned spread L+500