Our Clients

Capital Structure Advice

• With stock tripling in the prior 4 months and investors looking for energy paper, Matthews South proactively reached out to the Company on refinancing the existing 2023 convertible and advised on various alternatives

Structuring

• With five banks showing vastly different terms and structures, Matthews South analyzed the alternatives and shared views on expected pricing for both the repurchase as well as the new issue
• While most banks focused on a standard one-day bookbuild transaction, Matthews South recommended an overnight structure to eliminate stock price risk
• Our strategy ensured senior banker focus in the midst of one of the busiest periods in convertible history
• Matthews South advised on structural details, including callability, accounting method, and maturity.

Marketing and Pricing

• Given overnight deals with concentrated existing holders often result in wide-end terms, we recommended tightening the price talk, saving the company 25bps of coupon
• Repurchase strategy allowed the company to buy back existing securities at a discount to par
• The deal was priced on an overnight basis following two days of wall-crossing, eliminating stock price risk

The transaction allowed Oil States to roll 80% of their 2023 convertible securities into a new 5-year security and strengthen the balance sheet