Halister News

--BRENDAN MURRAY

(Bloomberg) -- Downside bund skew may richen with futures having reached the flagged target area and with any overshoots in the early half of August -- due to summer seasonality and fall in EGB supply -- likely to be faded ahead of the Aug. 24-26 Jackson Hole summit.

• August may see the second-lowest monthly EGB supply of 2017 after December as supply dries up after tomorrow’s EU6.5b OAT sale, when bunds are at risk of extending higher with upside potentially capped at 163.50 (0.44%) before the resumption of the selloff toward 0.72%
• Bund downside skew may richen ahead of the next major event risk -- Jackson Hole and ECB meeting on Sept. 7; see chart here of September skew where downside has richened over the last couple of days
• NOTE: While the fair value for bunds was only modestly rich prior to Sintra (vs extreme valuations prior to 2015 bund VaR shock), a further selloff toward 70bps area may see bunds cheapness stretched given diminishing inflation risk
• NOTE: Tanvir Sandhu is an interest- rate and derivatives strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice

To contact the reporter on this story: Tanvir Sandhu in London at tsandhu17@bloomberg.net To contact the editors responsible for this story: Ven Ram at vram1@bloomberg.net Anil Varma

(Bloomberg) -- PharMerica to be bought by newly formed company controlled by KKR, with Walgreens Boots Alliance for $29.25/shr in cash.

• Walgreens Boots Alliance to have minority equity stake in new company
• KKR making investment primarily through Americas XII Fund
• Fully committed debt financing to be provided by Goldman
• Sachs, Morgan Stanley, Wells Fargo, Jefferies and KKR Capital Markets
• Price represents premium 17% to closing share price as of last trading day prior to announcement
• PharMerica financial advisers are UBS Investment Bank and BofA Merrill Lynch
• PharMerica also reports 2Q adj eps 47c matching analyst estimate
• PMC shares halted

Link to Statement: PharMerica Corporation Enters into Definitive Agreement to Be Acquired by KKR for $29.25 per Share in Cash Link to Earnings Statement: PharMerica Reports Second Quarter 2017 Results To contact the reporter on this story: Kimberly Yuen in New York at kyuen3@bloomberg.net

(Bloomberg) -- Jacobs Engineering to buy CH2M Hill in cash and stock in deal with enterprise value about $3.27b including about $416m of debt.

• Transaction equity value $2.85b to be paid 60% in cash, 40% in stock
  • CH2M holders to have option to elect either $88.08 in cash, 1.6693 shares or mix of $52.85 in cash and 0.6677 shares
• Sees deal adding 25% to adj cash eps
  • Sees deal adding 15% to adj cash eps in first full year after closing
• Sees financing deal with $2.4b cash
  • Post-close liquidity will be about $900m
• Sees annual cost synergies $150m
• CH2M holders to won 15% of JEC shares outstanding
• JEC financial advisers are Perella Weinberg, Morgan Stanley
  • CH2M financial advisers are BofA Merrill Lynch, Credit Suisse
• Conference call to discuss transacation to be held today at 8:30am ET
  • U.S./Canada (833) 231-8270, International (647) 689-4115; Passcode 65134301
• NOTE: Earlier, Jacobs Engineering Is Said to Near Buying CH2M for $2.85B: WSJ

Link to Statement: Jacobs to Acquire CH2M to Create Premier $15 Billion Global Solutions Provider To contact the reporter on this story: Kimberly Yuen in New York at kyuen3@bloomberg.net