Top Axes:
Trading Recap:
Super Micro Computer, Inc. (SMCI) Announces private placement of $700.0 Million of 2.25% Unsecured Cvts due 2028 funded by subscription of existing 0% Cvts due 2029 (see details below). MKSI 1 ¼ 06/01/30 continues to trade higher $ ntrl, with bonds trading 101.30-101.50 vs. $110.64. SNAP 0 ⅛ 03/01/28. GRPN 6 1/4 03/15/27 traded up ½ pt $ ntrl. We remain axed here, vs 11.73 95 1/2 - 96 ¼.
Notes Below: SMCI & SNAP
Super Micro Computer, Inc. (SMCI) Announces private placement of $700.0 Million of 2.25% Unsecured Cvts due 2028 funded by subscription of existing 0% Cvts due 2029.
- New Cvts will be priced at a 50% premium to tomorrows (2/12) close.
- New Cvts will be provisionally callable after one year w/ a 150% trigger.
- 7/15/28 maturity
- UOP: GCP
Existing Cvt will be amended to reset the coupon to 3.5% and the premium to 105% of tomorrows (2/12) close. Existing cvt holders will provide certain waivers.
- Amendments effective and subscription to close 2/20.
Business Update:
2Q (12/31/24) “Results”
- Sales: $5.6 billion to $5.7 billion v $5.8 billion consensus
- Non-Gaap EPS $0.58 to $0.60 v $0.64 consensus
3Q (3/31/25) Guide
- Sales: $5.0 billion to $6.0 billion v $6.0 billion
- Non-Gaap EPS $0.46 to $0.62 v $0.69 consensus
F 2025 (6/30/25) Guide
- $23.5 billion to $25 billion v $25 billion consensus
Approximate Balance Sheet at 12/31
Cash: $1.4 billion
Debt:
Bank Debt $0.2 billion
Cvts 0% 29 $1.725 billion
Total Debt $1.9 billion
Accounting Update: Company believes it can file reports by 2/25/25
SEC DOJ Investigation: Company received subpoenas from both.
Snap Inc. (SNAP) Prices Upsized Straight Deal and Cvt Buyback
- Deal upsized to $1.5bil from $700mm
- 6.875% Coupon v “Low 7%” marketed
- Due 2033
- Senior Unsecured, subsidiary guarantees. Structurally senior to Cvts
- B1, B+, BB (Fitch).
- Cvt Repurchases: Aggregate UOP $1,445.1mm
- $45.3mm in principal of 2026 Cvts
- $797.4mm in principal of 2027 Cvts
- $800mm in principal of 2028 Cvts
Balance Sheet at 4Q and PF For New Nts
4Q PF
Cash: $3,376 $30 $3,406
Debt:
$1.05bil Revolver undrawn Unsecured, $80.7mm in LCs out, 5/27 maturity, S+75
Cvt 0.25% 5/25 36 36
Cvt 0.75% 8/26 250 (45) 205
Cvt 0.0% 5/27 1,150 (797) 353
Cvt 0.125% 3/28 1,500 (800) 700
Cvt 0.5% 5/30 750 750
Total Debt $3,686 (1,642) $2,044
Mkt Cap: $18,439
Cash Flow
($’sin millions) 2024 2023 2022
OCF 414 247 185
Invst. (197) (273) (231)
FCF 217 (26) (46)
Description:
Snap believes the camera presents the greatest opportunity to improve the way people live and communicate. They contribute to human progress by empowering people to express themselves, live in the moment, learn about the world, and have fun together.
Pre-Mkt Convert Stock Movers:
Recent Notes – By Date
Desk Contacts:
Dave Sposito (Head of Desk) – 212-692-5172 – [email protected]
Zach Johannes (Trading) – 973-222-6189 - [email protected]
Denise Dalonzo (Sales) – 917-699-1630 - [email protected]
Walter McNulty (Sales) – 203-219-5837 – [email protected]
Chris Frascella (Sales) – 203-912-7535 – [email protected]
Rob Weaver (Strategist) – 203-399-7023 – [email protected]
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