JWCA advises 3D Systems on the repurchase of ~$135mm convertible notes for cash at a 26% discount to par

December 2023 | read press release

Transaction Background

In December 2023, JWCA advised 3D Systems Corporation (the “Company”) on the cash repurchase of ~$135mm of its outstanding 2026 convertible. 3D Systems wanted to repurchase their notes at a significant discount to par to opportunistically manage their outstanding liabilities and capital structure. This is J. Wood’s second advisory assignment for the Company after advising on its $460mm convertible issuance in November 2021.

3D Systems' objectives included:

  • De-lever: retire a portion of the convertible to reduce debt balance

  • Capture a sizeable yield-to-maturity by purchasing the notes at a meaningful discount to par, while also saving a significant amount of cash at maturity

  • Minimize transaction and friction costs: execute as efficiently as possible with a focus on minimizing execution costs

In its role as Repurchase Agent for the transaction, JWCA provided the following support for the Company:

  • Provided analysis and advice around tactics related to investor targeting and engagement

  • Led the investor outreach, negotiation, and execution of repurchases

  • Assisted the company with the analysis of convertible economics and pricing dynamics

Results

The Company executed a successful liability management transaction for its 0.00% coupon convertible notes due 2026:

  • The Company repurchased ~$135mm face value of their convertible notes (~29% of outstanding) for cash at a meaningful 26% discount to par

  • The Company also achieved an ~11% yield-to-maturity on the repurchase