Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Sensata IPO is overpriced, $3.2bb market cap

|Includes: ETN, Sensata Technologies Holding N.V. (ST)

Sensata Technologies (NYSE:ST), Sensors & controls, based in the Netherlands
Scheduled to IPO Thursday, March 11

OVERVIEW
. Trying to raise: $600mm, Post IPO market cap of 3.2bb at price range mid-point of $19
. Post IPO still will be highly leveraged with $1.93bb of long term debt
. And…$2.4bb remains on the balance sheet for ‘goodwill & other intangible assets’
. Will report a loss for the forseeable future based on …amortization of intangible assets and capitalized software (in $mm).  Income statement charges for the last three years are:
2007: $131mm
2008: $148mm
2009: $153mm
. EBITDA in 2009 was $367mm, interest charges were $150mm, so in 2009 ST’s coverage of interest charges was only 2.4




Disclosure: no positions