March 16, 2021
$200 million Convertible Notes
Size: $200mm + 15% Shoe
Offering Type: 144A
Execution Structure: 1 Day Marketed
Maturity: 5 Years
Structure: Provisionally Callable in 3
Years with Make-Whole Coupon: 0.50% (price talk 0.5 – 1.0%)
Premium: 35% (price talk 30 – 35%)
Effective Premium: 75% with Capped Call
Matthews South Role: Financial Advisor
Active Bookrunners: JPMorgan, Wells Fargo Citi
Offering Type: 144A
Execution Structure: 1 Day Marketed
Maturity: 5 Years
Structure: Provisionally Callable in 3
Years with Make-Whole Coupon: 0.50% (price talk 0.5 – 1.0%)
Premium: 35% (price talk 30 – 35%)
Effective Premium: 75% with Capped Call
Matthews South Role: Financial Advisor
Active Bookrunners: JPMorgan, Wells Fargo Citi
$200mm Convertible Notes
Complete Process and Execution Management
- We helped the company evaluate alternatives, structure the transaction, and draft the documentation prior to any involvement from the banks
- Helped formulate syndicate strategy to achieve company’s objectives around execution success, acknowledgment of value delivered, and transaction costs
Novel Structuring – First Canadian-Domiciled Convertible with Capped Call
- Navigated securities regulation, accounting and documentation to achieve an issuer-friendly structure`
Issuer-Friendly Terms
- Matthews South provided critical judgments on price talk range in advance of launch to maintain aggressive posture with market despite choppier market conditions
- Company positioned itself as a unique asset, with a superior credit story to the more severely COVID-affected exhibitor sector
Day of Marketing Support
- Matthews South advised the company throughout the day of execution to help ensure that the security was priced optimally
- One of only a handful of convertible offerings in March to price at the issuer-friendly end of terms
- Careful messaging to market on expected allocations contained stock price dislocation at end of day
- Our call spread auction achieved efficient pricing terms in a crowded market
