Our Clients

Multi-faceted transaction structuring

• Assisted company in coordinating convertible, high-strike call spread and multi-phase share repurchase process designed to achieve large recapitalization relative to float (26% of float)

Convertible Structuring and Pricing

• Matthews South advised the company on documentation and appropriate launch range
• Matthews South’s suggested price range resulted in a lower coupon by 1/8 or ~$2mm over the life of the bond

Bond Hedge & Warrant Structuring

• The company worked with Matthews South to determine whether it should execute a capped call or bond hedge and warrant
• Matthews South helped the company decide the effective conversion premium (up 150%), tied for the highest call spread strike since 2017

Designed Call Spread Bid Process to Optimize Terms

• Recommended adding financial institutions that have displayed aggressiveness in other bid situations
• Call spread execution strategy was integral in this situation given novelty of upper strike above 100% (up 37.5% to up 150%)
• Achieved 4.4% / $12.1mm savings to initial indications

Day of Marketing

• Matthews South advised the company throughout the day of execution to help ensure that the security was priced optimally and the message to the market was consistency
• The stock traded up 12.6% on the day of marketing
• The bonds traded around par after the deal priced, indicating the company received the most efficient pricing possible

Additional Deals for Guess?:

• Apr 2023: $275mm Private Convertible Exchange
• Mar 2022: $175mm Accelerated Share Repurchase