JWCA advises Alignment Healthcare on its $330 million private convertible financing

November 2024 | read press release

Transaction Background

Alignment Healthcare, Inc. (“ALHC” or the “Company”) successfully raised $330 million in a private convertible financing to lower its cost of capital by prepaying its existing term loan facility and to raise additional capital for general corporate purposes

Alignment’s objectives included:

• Lower its cost of capital by refinancing the existing Oxford facility

• Set conversion price with minimal stock price risk

• Partner with a syndicate of investors for long-term growth

• Take advantage of the strong convertible market and business momentum

The Company engaged J. Wood Capital Advisors, LLC (“JWCA”) to assist in the structuring, negotiation, documentation, and execution of this transaction

JWCA provided analysis to the company on deal structuring and related items, including:

• Refinancing analysis

• Convertible structuring

• Documentation

• Shareholder messaging

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

JWCA acted as sole placement agent, and led the marketing, pricing negotiations, and allocation of the security

Results

Alignment Healthcare was able to raise $330 million without a day of public marketing

• The transaction received significant outright demand and was oversubscribed

Raised sufficient capital to prepay the entire Oxford term loan, replacing senior secured, high floating-rate debt with a low fixed-coupon unsecured convertible

Alignment minimized stock price risk, as the transaction was executed over a confidential marketing process and priced overnight with convertible investors

J. Wood Capital purchased ALHC stock to facilitate the transaction