JWCA advises 3D Systems on its $460 million zero-coupon convertible issuance

NOVEMBER 2021 | read press release

Transaction Background

3D Systems successfully raised $460 million (inclusive of greenshoe), upsized by ~14%, in the convertible market at very attractive terms (0.00% coupon and 42.5% conversion premium)

3D Systems took advantage of strong underlying market conditions to successfully execute its convertible bond offering

3D Systems engaged J. Wood Capital Advisors to assist in the structuring, negotiation, documentation and execution of its transaction

JWCA provided extensive analysis for 3D Systems on deal structuring and related items, such as:

• Convertible structuring

• Analysis of benefits/considerations of a capped call / call spread

• Accounting and tax analysis/implications

• Syndicate structure and precedent data

• Convertible documentation advice to ensure maximum value and future efficiency/flexibility for the company

JWCA provided advice, support and analysis throughout the negotiation and execution process

Results

3D Systems’ convertible issuance was very well-received by investors

• Priced with a 0.00% coupon, which was the low end of the marketed coupon range of 0.00 – 0.50%

• Priced the conversion premium at 42.5%, which was higher than the marketed conversion premium range of 35 – 40%

• Upsized the transaction by $50 million ($400mm + $60mm greenshoe, +14%)

3D Systems achieved the best convertible pricing of the year for a Technology company with < $5 billion market cap