IFR International - 21.07.2018

%STABLISHMENTû,ABSûSHARESûCLOSEDûlRST
DAYû
TRADINGûONû4HURSDAYûATû53ûANDûTRADEDû
LATEûINûTHEûWEEKûATû53 ûûABOVEû
OFFER
%STABLISHMENTûISûTHEûFOURTHûMEDICALû
DEVICEûCOMPANYûTOûGOûPUBLICûONûAû53û
EXCHANGEûTHISûYEAR
/NEûREASONûFORûTHEûPOPULARITYûISûTHATû
MEDICALûDEVICEûCOMPANIESûAREûEASYûTOû
UNDERSTANDû)NûTHEûCASEûOFû%STABLISHMENTû
SPECIlCALLY ûTHEûINVESTMENTûPREMISEûISû
ROOTEDûINû&$!ûAPPROVAL
%STABLISHMENTûHASûBEENûSELLINGûITSû-OTIVA
BRANDûBREASTûIMPLANTSûOVERSEASûSINCEû
4HEûCOMPANYûENROLLEDûITSûlRSTûPATIENTûINû
ANû&$!ûCLINICALûTRIALûINû!PRILûANDûPLANSûTOû
ENROLûûPATIENTSûBYûEARLYûû)TûEXPECTSû
TOûUSEûRESULTSûFROMûTHOSEûTRIALSûTOûlLEûFORû
APPROVALûWITHûTHEû&$!ûASûEARLYûASûNEXTûYEAR

STRUCTURED EQUITY

CHINA

JP MORGAN SELLS PING AN EB

3OLEûBOOKRUNNERûJP Morgan has raised
53MûFROMûAû
YEARûCASH
SETTLEDû
EXCHANGEABLEûBOND ûWITHû(
SHARESûOFûPING AN
INSURANCE (GROUP) COMPANY OF CHINA as the
REFERENCEûSHARES
4HEû%"ûCARRIESûAûZEROûCOUPONûANDûZEROû
YIELD
TO
MATURITYû4HEûEXCHANGEûPREMIUMû
WASûSETûATû ûVERSUSûTHEûMARKETEDûRANGEûOFû
n
)NVESTORSûWILLûRECEIVEûCASHûUPONû
CONVERSIONûOFûTHEû%"S ûRATHERûTHANûSHARESûINû
0INGû!N
It is understood that more than half of the
DEMANDûCAMEûFROMûOUTRIGHTûINVESTORSûANDû
THEREûWASûAûGOODûMIXûOFû!SIANûANDû%UROPEANû
BUYERS
4HEûNETûPROCEEDSûWILLûBEûUSEDûFORûGENERALû
CORPORATEûPURPOSES ûINCLUDINGûHEDGINGû
ARRANGEMENTS
!ûPERSONûFAMILIARûWITHûTHEûSITUATIONû
DESCRIBEDûTHEûISSUANCEûASûANûEXERCISEûTOû
HEDGEû0û-ORGANSûEXISTINGûPOSITIONSûINû0INGû
!NûSHARES
!û0û-ORGANûSPOKESPERSONûDECLINEDûTOû
COMMENT

UNITED STATES

CALAMP CHARGES UP ON HIGH-TECH CB

4ELEMATICSûPROVIDERûCALAMPûHASûSHOREDûUPûITSû
FUNDINGûWITHûAû53MûSEVEN
YEARû#"
4HEûDEALûWASûSTRUCTUREDûWITHûEVERYû
CONCEIVABLEûTWEAK ûINCLUDINGûAû

CONCURRENTûHAPPYûMEALûSTOCKûBUYBACK    û

DILUTIONûOFFSETûCALLûSPREAD    ûANDûLIABILITYû

MANAGEMENTûNEGOTIATEDûREPURCHASEûOFû

EXTANTûBONDS    

#AL!MPûSHARESûFELLûJUSTûûCENTSûORûû

ONûTHEû4UESDAYûMARKETINGûTOû53

h.ETûSTOCKûFORûSALEûWASûEFFECTIVELYûZEROû

when you factor in all of those things,” one

EQUITY

LINKEDûBANKERûINVOLVEDûINûTHEû

UNDERWRITINGûTOLDû)&2ûh4HEYûAREûDIVERSIFYINGû

their business away from hardware toward

SOFTWAREûSOûTHEREûISûAûMARGINALûBENElTûFROMû

HIGHERûOPERATINGûMARGINSv

JP Morgan, Goldman Sachs and JefferiesûPRICEDû

THEû#"ûATûAûûCOUPONûANDûûCONVERSIONû

PREMIUMûTHEûWIDEûENDûOFûnûANDûn

ûCONSISTENTûWITHûMOREûAGGRESSIVEûTERMSû

MARKETEDûONûRECENTûDEALS

#AL!MPûSPENTû53MûONûAûCONCURRENTû

STOCKûBUYBACKûDOWNûFROMû53Mû

INDICATEDûATûLAUNCH ûREPURCHASEDû53Mû

PRINCIPALûOFûITSûû#"ûTHATûMATURESûINû

ûANDûSPENTû53MûONûTHEûCALLûSPREADû

TOûOFFSETûDILUTIONûCONSIDERATIONûTOûPRICESû

ABOVEû53ûAûûPREMIUM

$EPENDINGûONûTHEûPRICEûPAIDûONûTHEû

ûûBID ûTHATûLEFTûABOUTû53MûFORû

GENERALûCORPORATEûPURPOSES

#AL!MPûWHICHûPURCHASEDûCAR

THEFTû

PREVENTIONûPROVIDERû,O*ACKûINûû

CONTINUESûTOûMAKEûPROGRESSûINûITSûGOALûTOû

GENERATEû53MûOFûREVENUEûANNUALLYû

FROMûHIGHER

MARGINûSOFTWAREûSUBSCRIPTIONS

)NûTHEûlSCALûlRSTûQUARTERûENDEDû-AYûû

THEûCOMPANYûBOOKEDû53MûOFûREVENUEû

FROMûSUBSCRIPTIONSûUPûûSEQUENTIALLYûANDû

REPRESENTINGûûOFûTHEû53MûINû

OVERALLûREVENUEûWITHûTHEûBALANCEûCOMINGû

FROMûHARDWAREûSALES

#AL!MPSûROLLOUTûOFûITSû#RASH"OXXûVEHICLEû

RISKûMANAGEMENTûANDûCOLLISIONûINFORMATIONû

PLATFORMûINû-AYûISûPARTûOFûTHEûINITIATIVEûTOû

BOOSTûSOFTWAREûSALESûANDûMARGINSû)TûHOPESû

TOûHAVEûTHEûTECHNOLOGYûINûûTOû

ûDEVICESûINûPLACEûBYûYEAR

ENDûAûSMALLû

FRACTIONûOFûTHEûMûDEVICESûCURRENTLYû

INSTALLED

ENCORE CAPITAL FOLLOWS UP WITH

NEW CB

$EBTûCOLLECTORûENCORE CAPITAL funded its

ACQUISITIONûOFû5+ûPEERû#ABOTû#REDITû

-ANAGEMENTûWITHûAû53MûlVE

YEARû

CONVERTIBLEûBONDûONû4UESDAY

%NCOREûAGREEDûTOûPURCHASEûTHEûREMAININGû

ûINTERESTûINû#ABOTûINû-AYûFORûaMûINû

CASHûANDûMûSHARESû4HEûCONSIDERATIONûWASû

SUBSEQUENTLYûREVISEDûTOûaMûANDûMû

SHARESûAFTERûCERTAINûSELLERSûOPTEDûFORû

ADDITIONALûCASH

!TûTHEûTIMEûOFûTHEûAGREEMENTû%NCOREûDIDû

NOTûSPECIlCALLYûOUTLINEûHOWûITûWOULDûFUNDû

THEûCASHûCOMPONENTûONLYûTHATûITûHADû

COMMITTEDûlNANCINGûINûPLACE

%NCOREûISûAûSERIALû#"ûISSUERûWITHûAû

53Mû#"ûMATURINGûINûûANDûANOTHERû

OFû53MûINûûSOûAûNEWû#"ûMADEû

SENSE

h%NCOREûHADûMULTIPLEûOPTIONSûAVAILABLEûTOû

THEMvûSAIDûONEûBANKERûINVOLVEDûINûTHEû

UNDERWRITINGûh4HEYûHAVEûAûHISTORYûINûTHEû

CONVERTIBLEûMARKETûSOûTHEYûDECIDEDûTOûCOMEû

BACKv

/NEûSTRUCTURALûWORKAROUNDûTHISûTIMEûISû

THATûTHEûNEWû#"ûWASûISSUEDûOUTûOFû%NCORESû

%UROPEANûSUBSIDIARYûSOûTHEûNEWûDEALûWOULDû

BEûSUBORDINATEûTOûEXISTINGûBONDS

SunTrust Robinson Humphrey, one of its

lenders, and Credit SuisseûWHICHûADVISEDûONû

THEû#ABOTûPURCHASEûCOMPENSATEDûFORûTHEû

SUBORDINATIONûINûMARKETINGûTHEûNEWû#"ûATûAû

COUPONûOFûnûANDûnûCONVERSIONû

PREMIUMû4HEYûALSOûUSEDûAûWIDERû,IBORûPLUSû

BPûCREDITûSPREADûANDûMID

SûIMPLIEDûVOLû

INûMARKETINGûTOûSUPPORTûTHEIRûVIEWûOFû

THEORETICALûCHEAPNESS

%NCOREûSHARESûFELLûûTOû53ûONû

4UESDAYûWHILEûTHEûDEALûWASûMARKETED

4HEûBANKSûlNALISEDûPRICINGûOFûTHEû

53Mû#"ûATûAûûCOUPONûANDûû

PREMIUMûTOûTHEûCLOSINGûREFERENCE

%NCOREûUSEDûAûPORTIONûOFûTHEûPROCEEDSûONûAû

CALLûSPREADûTOûOFFSETûDILUTIONûTOû53ûAû

ûPREMIUMû4HEûREMAININGûPROCEEDSû

ALONGûWITHûREVOLVERûBORROWINGSû53Mû

AVAILABLE   ûWILLûBEûUSEDûTOûFUNDûTHEû#ABOTû

ACQUISITIONûWHICHûISûNOWûEXPECTEDûTOûCLOSEû

INû!UGUST

7HENûITûAGREEDûTOûTHEûPURCHASEûINû-AYû

THEûCOMPANYûSAIDûTHEûDEALûWOULDûBEû

ACCRETIVEûTOûûEARNINGSûANDûTHATûITû

EXPECTEDûTOûGROWûEARNINGSûTHISûYEARûBYûhATû

LEASTvû

)NûCONJUNCTIONûWITHûTHEû#"ûLAUNCHû

%NCOREûPRE

ANNOUNCEDûSTRONGûSECOND

quarter results that call for net earnings of

53MnMûVERSUSûAû53Mû

CONSENSUSûANDûREVENUEûOFû53Mn

MûALSOûABOVEûTHEû53Mû

CONSENSUS

ARBOR REALTY BRANCHES OUT WITH

NEW CB

-ORTGAGEû2%)4ûARBOR REALTYûROLLEDûITSûCAPITALû

STRUCTUREûBYûRElNANCINGûONEûCONVERTIBLEû

BONDûWITHûAûNEWû#"

0ROCEEDSûFROMûTHEûNEWû53MûlVE

YEARû

#"ûWEREûUSEDûTOûREPURCHASEû53Mû

PRINCIPALûOFûAûû#"ûMATURINGûINûû

ANDûANOTHERû53MûOFûAû#"ûMATURINGû

NEXTûYEAR

JP Morgan and JMP SecuritiesûBROKEREDûBOTHû

PRICINGûONûTHEûNEWû#"ûANDûTAKEOUTûPRICESûONû

THEûEXISTINGûBONDS

!FTERûONEûDAYûOFûMARKETINGûONû4UESDAYû

THEYûSETûPRICINGûONûTHEûNEWû#"ûATûûUPû

ûTHEûINVESTOR

FRIENDLYûENDSûOFû

ûANDû

ûPRICEûTALK

STRUCTURED EQUITY