March 22, 2021
$750mm Convertible
Size: $650 million + $100 million greenshoe
Execution: 1 day marketed
Maturity: 5 years
Structure: Non-call 3, provisional call with make-whole thereafter
Coupon: 0.50% (price talk 0.25% – 0.75%)
Conversion Premium: 35% (price talk 32.5 – 37.5%)
Financial Advisor: Matthews South
Bookrunners: Goldman Sachs, Barclays Morgan Stanley, BNP Paribas
Execution: 1 day marketed
Maturity: 5 years
Structure: Non-call 3, provisional call with make-whole thereafter
Coupon: 0.50% (price talk 0.25% – 0.75%)
Conversion Premium: 35% (price talk 32.5 – 37.5%)
Financial Advisor: Matthews South
Bookrunners: Goldman Sachs, Barclays Morgan Stanley, BNP Paribas
$750mm Convertible
Capital Structure Advice
- Matthews South has been a long-standing capital markets advisor to the company, advising on capital return strategy and share repurchase execution since 2016
Pricing and Sizing Judgments
- As the convertible market became choppy after record-breaking supply in late February / early March, Matthews South assisted the company in selecting the launch strategy to achieve its target transaction size
- Advised the company on appropriate pricing range to balance the need to optimize terms while minimizing unnecessary execution risk
Day of Marketing
- Advised the company on day of execution to ensure efficient terms and contained market impact
- Given market conditions, it was critical to closely monitor market conditions and order book as investors increasingly pushed back on banks / issuers
Result was one of the few transactions in the preceding weeks that priced at the mid-points or better
- Successful marketing strategy resulted in a ~70% long-money investor allocation, with minimal reliance on hedge funds
