JWCA advises 3D Systems on the repurchase of ~$110mm convertible notes for cash at a 21.5% discount to par

march 2024 | read press release

Transaction Background

In March 2024, JWCA advised 3D Systems Corporation (the “Company”) on the cash repurchase of ~$110mm of its outstanding 2026 convertible. 3D Systems wanted to repurchase more of their notes at a significant discount to par to opportunistically manage their outstanding liabilities and capital structure. This is J. Wood’s third advisory assignment for the Company after advising on its ~$135mm convertible repurchase in December 2023 and $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, price 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 ~$110mm face value of their convertible notes (~34% of outstanding) for cash at a meaningful 21.5% discount to par

  • The Company also achieved a >9% yield-to-maturity on the cash deployed for the repurchase