February 25, 2025
$500 million + $75 million Greenshoe
Maturity: 6 Years
Execution Structure: 1-Day Marketed
Structure: Provisional Call with Make-Whole in Year 3
Coupon: 1.75% (1.75-2.25% marketing range)
Premium: 45.0% (37.5-42.5% marketing range)
Concurrent Stock Buyback: $48mm
Matthews South Role: Financial Advisor
Active Bookrunners: Goldman Sachs / Cantor Fitzgerald / TD Cowen / Mizuho
Execution Structure: 1-Day Marketed
Structure: Provisional Call with Make-Whole in Year 3
Coupon: 1.75% (1.75-2.25% marketing range)
Premium: 45.0% (37.5-42.5% marketing range)
Concurrent Stock Buyback: $48mm
Matthews South Role: Financial Advisor
Active Bookrunners: Goldman Sachs / Cantor Fitzgerald / TD Cowen / Mizuho
$500 million Convertible to Refinance Term Loan
Transaction and Process Overview
- Structuring
- Matthews South advised BridgeBio on the issuance of a new 6-year convertible security to refinance senior secured debt as part of its long-term debt management strategy
- The issuance enabled BridgeBio to:
- Enhance its balance sheet without increasing total liabilities
- Refinance its term debt facility, reducing interest expense and eliminating near-term amortization payments
- Significantly extend its debt maturity and gain greater operational flexibility
- We provided strategic guidance on the optimal structuring and execution of the transaction and helped the company navigate multiple workstreams
- Marketing and Pricing
- The convertible offering priced better than the initial marketing range at a coupon of 1.75% and a conversion premium of 45.0%
- Due to strong outright investor demand, the stock was down only 5.2%, despite the company raising ~9% of its market capitalization on a day where the S&P biotech index was down 1.6%
