Our Clients

Convertible Preparation Process

• Matthews South ran the structuring, documentation, and preparation process and acted as an extension of the company’s finance team
• Banks were invited into process after nearly all documentation and structuring were completed

Designed Call Spread Bid Process to Optimize Terms

• Recommended adding financial institutions that have displayed aggressiveness in other bid situations, especially important as call spread market has shown a divergence of prices between banks
• One of the company’s main objectives was to limit the after-tax cost of the call spread
• The competitive bid process resulted in an after-tax yield, inclusive of the call spread cost, of ~5bps and ~10bps for the 5 and 7 year tranches, respectively

Make-Whole Table

• Make-Whole tables are increasingly important to issuers given provisionally callable bonds with make-whole, but issuers lack the tools to assess bank-proposed tables
• Matthews South oversaw the table creation to ensure fairness to the company

Marketing & Pricing

• Matthews South advised the company on launch range and throughout the day of execution to help ensure that the security was priced efficiently
• The bonds traded close to par after the offering which confirm that Dropbox achieved optimal pricing