Friday, January 15, 2016

Sold Dyax and More Solarwinds

I sold my position in Dyax (Ticker: DYAX) today at $38.18. It was just too good for me to pass up at this point. I essentially sold the CVR for $0.88. The CVRs have a potential payout of $4.00 in ~ 3 years. My net gain in Dyax was 2.31% with an annualized return of 27.44%. I still have a ton of Short Puts in Dyax, which hopefully will expire worthless. I used the funds from Dyax to add to my position in Solarwinds (Ticker: SWI) at prices ranging from $58.58 to $58.68 (buyout price is $60.10 in cash). I currently have a ~ 12% position in Solarwinds. I believe Solarwinds should not have too much trouble raising the funds to complete the private equity buyout. This deal should close early next month.

6 Comments:

At January 25, 2016, Anonymous Anonymous said...

I haven't seen any news on SWI and the price has been drifting down. Are you still expecting an early February close? With cheaper prices should I be buying more?

 
At January 25, 2016, Blogger Money Turtle said...

My disclaimer: I'm not going to make any recommendation as to whether you should buy or sell. It's a decision only you can make...

Yes, SWI has been drifting lower along with everything else out there. MedAssets was able to finalize their loan last week, which should be viewed positively for SWI. The SWI loan commitments are due this Wednesday, the 27th. If all goes well, this deal can close shortly after.

 
At January 28, 2016, Anonymous Anonymous said...

What a difference a few days can do. The market is now pricing this as close to a done deal. I did not see any press release about loan commitments. Was there supposed to be announcement by then?

 
At January 28, 2016, Blogger Money Turtle said...

The company is not going to issue a press release regarding the status of the loan commitments. I've seen chatter that SWI is scheduled to close next week.

 
At January 30, 2016, Anonymous Anonymous said...


Hi MT,

Are you able to share with us where you see this type of chatter? On the official news reports, I have not been able to determine why the market is pricing this as if he deal is imminent. I feel like I am missing something, on how to properly asses these situations.


Also, do you think it might be worth while looking int BXLT and CNL again?

Thank You

 
At January 31, 2016, Blogger Money Turtle said...

Waiting for official news releases for merger arb play may not be the best strategy. Companies will not offer much info in terms of press releases once they announce a merger. You will need to dig through the regulatory filings to look for clues (i.e. timing for HSR approval, etc...) With private equity deals that rely on junk financing, you want to keep tabs on the junk financing news. S&P LCD (Leverages Loan News) is a good source.

For example, S&P LCD reported last week that the SWI "LBO term loan pricing firms at sweetened talk". This tells me that this loan is just about done...

dealReporter had a blurb suggesting that SWI was on track to close this week...

BXLT worries me a bit. Why is Baxter dumping BXLT now?

I haven't done any work on CNL yet...

 

Post a Comment

<< Home