The Week That Was

In new issuance this week, we saw two deals announced.  Primero Mining Corp(PPP) announced a $75 million bought-deal.  Because the deal was small and bought, we did not comment on it.  SunEdison (SUNE) announced its fourth convertible bond deal in just over two years on Tuesday.  The proceeds from the upsized $400 million convertible senior notes offering will be used to fund a portion of the $2.4 billion First Wind Holdings acquisition that was announced in November.  The acquisition will diversify SUNE beyond solar power and allow First Wind to diversify beyond its US base as SUNE has solar development projects underway on every continent.  The initial HOCS slash line for the new deal was 55 Overall / 73 Growth / 20 Safety.  The low safety score is not surprising for a company with over $7 billion of pro-forma debt and negative EBITDA for the last twelve months.  Our advice is to proceed with caution. 
 
Bill spent a few minutes yesterday discussing the new Uber pre-IPO convertible bond deal with Bloomberg's Kathleen Hayes.  If you missed it, click here for a replay (
hillsi.de/bmbrg012215)            
 
Earnings news remains very light, but that will change next week.  We saw announcements from two convertible companies this week.  Sandisk (SNDK) announced results on Wednesday.   EPS was in-line with consensus estimates, but revenue fell short of management's recently lowered guidance.  Stay tuned for a more in-depth look at SanDisk in Monday's Hybrid Vigor.  Infinera Corp (INFN) announced results Thursday, beating both EPS and revenue consensus estimates.
 
In other news this week,  TTM Technologies (TTMI) announced an offering of $350 million of senior secured notes due 2023.  The proceeds will be used to fund a portion of the Viasystems acquisition, to repay existing debt, and for general corporate purposes.........  Health South (HLS) announced an offering of $400 million of 5.75% senior notes due 2024.  The proceeds will be used to repay a term loan and pay down the revolver, both of which were used to fund the Encompass Home Health and Hospice acquisition.........  Sequenom (SQNM) announced a development agreement with Cypher Genomics for next generation noninvasive prenatal tests. 
 
Companies announcing earnings for the upcoming week include:  Rambus for Monday; Accuray, Illumina, Electronic Arts, and Yahoo for Tuesday; Meritor, Service Now, Lam Research, Citrix Systems, and Hologic for Wednesday; and Ryland, Royal Gold, Proofpoint, Quantum Corp, Emulex, InvenSense, JDS Uniphase, NetSuite, Meritage, Quantum Corp, Electronics for Imaging, and Callaway Golf.