Our Clients

Transaction and Process Overview

• Structuring
  • Matthews South advised Arrowhead on a concurrent offering of convertible notes and common stock, launched on the back of recent commercial and clinical milestones
  • The transaction extends Arrowhead’s cash runway into 2029, de-risks the company’s commercial drug launch, and funds its pipeline of clinical-stage assets
  • The dual-tranche financing provides low cash cost debt during the early launch phase and results in significantly lower dilution than a standalone equity raise
  • We helped the company navigate multiple work streams, focusing on optimal structuring, documentation, pricing and execution

• Call Spread Process
  • Matthews South ran an extensive auction with 20+ banks to optimize price, increasing the effective point of dilution to up 85%
  • Company achieved an all-in pre-tax yield of ~1.2% on the 6-year convertible + call spread up 85%

• Marketing and Pricing Outcome
  • Due to strong investor demand, the convertible offering was upsized from a launch size of $500 million and priced better than the initial marketing range, with a 0% coupon and 35% conversion premium
  • The company achieved a historic pricing outcome, becoming the first biotech issuer to price a convertible with a 0% coupon for a maturity of 6 years or greater
  • The common stock offering saw strong demand and priced at less than a 2% discount to the closing price