Valuing a senior secured note using CIQ

New to this.. so please go easy on me.

Looking at a US domiciled $4B+ market cap company with an exotic capital structure including convertibles, senior debentures, leases, preferred stock and of course senior secured notes. Interested in valuing one due in 2023 with a 4.375% yield, and 750m principal due.

How would you go about valuing this bond, and if you have experience with capital IQ.. where could I find the price it's currently trading at etc. Thanks!

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Comments (6)

Apr 5, 2021 - 10:41pm

I guess my follow up question would be.. if I have the yield that the security was priced at I can use conventional valuation techniques to come up with the price it was issued at. However, assuming the security is traded on secondary markets, where can I find the most recent yield for me to calculate the most recent price I would have to pay today?

I'm looking at distressed companies and I'm trying to calculate prices to determine current YTM etc for an investment pitch

  • Associate 2 in PE - Other
Apr 6, 2021 - 9:42am

I think you're overcomplicating this. If it is a distressed company then yield doesn't matter because presumably you won't be getting repaid at stated maturity, and even if you are distressed is more often about MOIC. You value the company's EV just like you normally would and assess asset coverage through the credit you're looking at. If you think asset coverage is 90 cents and it is trading at 60 cents, there you go. If the credit has a CUSIP you can likely search it for free via FINRA's website. 

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