Our Clients

Achieved best priced convertible in past 15 years

• Square’s most recently issued a convertible in March 2020 which priced at 0.125% up 50%; the comparable 5.5yr tranche now priced at 0% up 62.5%
• Both tranches priced outside initial marketing range, with ~4x over-subscription
• Pricing achieved confirms current robustness of convertible market

Convertible Preparation Process

• Matthews South ran the structuring, documentation, and preparation process and acted as an extension of the company’s finance team

Designed Call Spread Bid Process to Optimize Terms

• Recommended adding financial institutions that have displayed aggressiveness in other bid situations

• Square achieved very competitive pricing despite the recent weakness in call spread market; auction strategy, counterparty selection and process management was critical

Make-Whole Table

• Make-Whole tables are increasingly important to issuers given provisionally callable bonds with make-whole, but issuers lack the tools to assess bank-proposed tables
• Matthews South oversaw the table creation to ensure fairness to the company

Marketing & Pricing

• Matthews South advised the company throughout the day of execution to help ensure that the security was priced efficiently
• The bonds priced outside of the marketing range, to the company’s benefit, trading up only ~0.6 pts on the 5 year and ~0.1 pts on the 7 year