JWCA advises 8x8 on its $288 million debut convertible BOND and capped call

FEBRUARY 2019 | read press release

Transaction Background

8x8 was interested in accessing the convertible debt market to raise opportunistic capital for general corporate purposes. 8x8 selected JWCA as its financial advisor on the transaction to provide market knowledge, comprehensive execution support, and unbiased advice.

JWCA provided extensive analytics and support to aid in key decisions:

• Structuring advice on whether to tax-integrate the capped call

• Analysis of economic impact of convert and capped call in various scenarios

• Syndicate economics and fees

• Documentation

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

Results

One of the few convertible executions ever to achieve a positive stock reaction, upsize, and pricing that was better than mids:

• Stock price rose ~1.1% on execution day while many peers were down

• Strong investor demand led to a $50mm upsize from the launch size of $200mm

• Convert priced at the company-friendly end of the marketed coupon range and midpoint of the conversion premium range

Capped call documentation and negotiation process produced meaningful savings for 8x8, while protecting the company in early unwind scenarios