06-17-14 Acorda Therapeutics (ACOR)

$300m (+45m) sen unsec cb coming tomorrow from JPM. Terms: 7yr, 1¾-2¼% up 27½-32½%, S/C 3y @ 130%, full pcnts. UOP=gcp/acq.

$1.4bn biotech founded in ’95. Develops therapies 4 MS, spinal cord injuries (SCI) & nervous system disorders. Main drug=Ampyra (approved 01/10, improves walking 4 MS patients). Rest=Zanaflex

(spasticity) & Qutenza (neuropathic pain). Pipeline=1xPH3,2xPH2,

3xPH1 & 2xpre-clinical. PFcash=565m,debt=303.3m,LTMebitda=43.6m,

gross lev=6.9x.We’d assume L+500.ADV=414k, no leaps, 1y 100/200d =44/39. Low ADV/7y = we’ll dscnt to 35%. Theo=98.5/100.6/102.8.

From small ACORns grow oak trees; deal will appeal 2 both hedge & l/only. A good story/improving credit play in an under issued biotech space. Little more needs to be said

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