June 14, 2023
$64.5mm
Security: 0.5% Convertible Senior Notes due 2026
Consideration: Cash Repurchase
Repurchase Price: ~71% of Principal Amount
Discount: ~29%
Yield to Maturity: 12.8%
Execution Format: Investor Wall-cross
Matthews South Role: Repurchase Agent
Consideration: Cash Repurchase
Repurchase Price: ~71% of Principal Amount
Discount: ~29%
Yield to Maturity: 12.8%
Execution Format: Investor Wall-cross
Matthews South Role: Repurchase Agent
$64.5 Million Opportunistic Convertible Notes Repurchase
Transaction Overview
- Matthews South advised Coinbase Global, Inc. on a cash repurchase of $64.5 million of 0.50% convertible senior notes due 2026
- Transaction enabled Coinbase management to signal confidence in its business, and occurred after delivering strong first-quarter 2023 results
Capital Structure Approach
- Company was able to de-lever the balance sheet and capture a 29% discount to the face amount of the security and lock in a 12.8% return on its cash
- Matthews South advised the Company on its capital structure approach, including economic analysis of repurchase consideration, security selection and decision not to unwind associated capped call
Execution Management
- Matthews South managed the complex liability management process, including wall-cross of investors, negotiation with investors, and review of documentation
Additional Deals for Coinbase
