$200m (30m) sen unsec cb coming tonight from GS Terms: 01/19 5.875% up 15% (at par) 97.25-07.75 reoffer. Full pctns, UOP = gc/inv profile. Deal 5 in its financial engineering program. 6.25% 107 x/par +12%, 5.5% 102.5 & x/par +19%, 5.375% 102.5 x/par 9.5%, 5.75% 100.75 x/par +14% (came 8/12 @97.75 & struggled initially). We saw CO 12/05 & will send credit color shortly. We’d assume L+625 for 6 yr. All deals have transferred over to O/R ownership over time incl the recent 5.75%. BRW off top, we’ll use 75bp (delta small so not a big effect) & cap vol @20%, O/R interest will determine stk pressure. Stk -2.5%/5% theo = 97.3/96.88. Not cheap but other 4 have o/r fan club tho may take time to find Boring we’d prefer sub 97.25
Business development company investing primarily in mid-market privately held companies
PF cash = $379m
PF debt =$1036m
LTM EBITDA = $250m
LTM FCF = -808m
Debt/equity 0.55x
Mkt cap = 2.283B
Co has been aggressively growing their portfolio & indicated they had many deals to close near term. Funding growth thru combo of equity (share count +54% since June) & debt. Bank line renegotiated March, secured, paying L+275, entire $517m available. > 75% of investments are secured debt (senior and sub) & co has good record. Converts pari with other senior notes. Significant unemcumbered assets provides flexibility
Our assigned spread L+625