JWCA advises Altair Engineering on its $230mm convertible refinancing

JUNE 2022 | read press release

Transaction Background

Altair Engineering successfully raised $230 million (inclusive of $30million greenshoe) in the convertible market at attractive terms (1.75% coupon and 30.0% conversion premium)

Altair’s objectives included:

• Optimize the balance sheet by refinancing a portion of their outstanding 2024 Notes which was in-the-money and causing dilution

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

JWCA provided extensive analysis for Altair on deal structuring and related items, such as:

• Convertible structuring

• Repurchase analysis and execution strategy

• Syndicate structure and precedent data

• Accounting analysis/implications

• 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

Altair Engineering’s convertible issuance was very well-received by investors

• The transaction was multiple times oversubscribed

• The 30% conversion premium represented the high end of the marketed range

• Altair’s stock traded up +1.0% on the day of execution despite NASDAQ being down ~(2.8%)

Retired ~$148mm of existing 2024 bonds (~65%) with minimal friction cost

• Effectively increasing conversion price to $71.68 from previous $46.50