May 15, 2018
$200mm Convertible Offering
Size: $200mm + 15%Shoe
Offering Type: 144A
Execution Structure: 1 Day Marketed
Maturity: 5 Years
Structure: Non-Call Life
Coupon: 0.50%
Premium: 42.5%
Effective Premium: 100% with Capped Call
Matthews South Role: Financial Advisor
Bookrunners: J.P. Morgan and Goldman Sachs
Offering Type: 144A
Execution Structure: 1 Day Marketed
Maturity: 5 Years
Structure: Non-Call Life
Coupon: 0.50%
Premium: 42.5%
Effective Premium: 100% with Capped Call
Matthews South Role: Financial Advisor
Bookrunners: J.P. Morgan and Goldman Sachs
Case Study: $200mm Alteryx Convertible
Transaction and Process Overview
Structuring
- Matthews South helped the company evaluate various bank proposals on both economics and structure of convertible and call spread
- Recommended pursuing a 1-day marketed deal structure with backstopped terms –company took no risk on outcome of the coupon and premium
Designed Bid Process to Optimize Terms
- Developed and ran a competitive bid process to achieve attractive pricing on both the convertible and capped call
- Recommended adding financial institutions that have displayed aggressiveness in other bid situations
Day of Marketing
- Matthews South advised the company throughout the day of execution to help ensure that the security was priced efficiently
- Conversion premium achieved (42.5%) was one of the highest for a software company in the past few years
Cost Reduction
- The company saved $1.0mmon the convertible offering vs. precedent gross spreads (savings include cost of hiring Matthews South)
Additional Deals for Alteryx:
