MF Global (MF) new issue 7/28/11

$300m (+45m) 144a senior unsec cb pxing tonight from GS/Citi.
erms: 7 yr bullet, 2.875%-3.375% up 32.5-37.5, prot, UOP = repurchase $109m 9% cb, hedge. Since bringing 1.875% ’16 in Feb, co burning cash and drew down on revolver (will have $322m avail thru 6/14) PF cash = 809m, PF debt = 1.046b, LTM FCF -474m, LTM EBITRA = 162. Post deal, using 30 vol, 1.875% ~L+550. Use L+575 for 7 yr. ADV = 2.1m 2 yr 90d 50/10ile = 40/31. Will keep vol @30 for 7 yr. 1.875% came up 27.5%, now xpar up 30.5 with weakness post deal announcement. Using gc brw, theo = 101.5. Need to be compensated for extending maturity, esp considering current tape, so don’t be an MF and push for cheaps.

Both comments and trackbacks are currently closed.