Our Clients

Strong Stock Price Performance

• Despite the NASDAQ declining 2.06%, Cloudflare’s stock increased 2.38% on the day of the offering
• Equity holders were pleased that the company was proactively raising opportunistic capital at very attractive terms

Convertible Structuring and Capped Call Bid (Up 100%)

• Recommended the convertible to include a provisional call with make-whole to enable the company to efficiently manage the bonds in upward stock price scenarios
• Analyzed call spread alternatives to balance upfront tax savings vs. potential unwind slippage–company ultimately chose a non-integrated capped call to maximize future flexibility
• Recommended adding financial institutions that have displayed aggressiveness in other bid situations–the company had no existing relationship with several of the bidders
• Achieved $2.5mm savings on capped call from pre-launch estimates

Process Management

• Matthews South was hired before banks were involved, and helped the company evaluate proposals on both syndicate economics and structural recommendations
• Matthews South led the organizational effort on documentation and accounting / tax analysesso the offering preparation was near-final by the time the banks were involved

Additional Deals for Cloudflare

• Aug 2021: $1.125bn Convertible