JWCA advises amphastar pharmaceuticals on its debut $345 million convertible issuance

september 2023 | read press release

Transaction Background

Amphastar Pharmaceuticals, Inc. (“AMPH”) successfully raised $345mm in the convertible market at attractive terms (2.00% coupon and 35.0% conversion premium)

Amphastar’s objectives included:

• Raise low-cost capital to refinance expensive, floating-rate debt

• Add cash to the balance sheet following the company’s acquisition of BAQSIMI®

• Reduce the number of shares outstanding

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

JWCA provided extensive analysis on deal structuring and related items, including:

• Convertible and share repurchase structuring

• Syndicate structure and precedent data

• Accounting and tax analysis / implications

• Convertible documentation to ensure maximum value and future efficiency/flexibility for the company

• Shareholder messaging

JWCA provided advice, support and analysis throughout the execution process

Results

Amphastar’s offering was well received by investors despite broader market volatility:

• The transaction was multiple times oversubscribed and reflected strong demand in the Company’s convertible bond offering

• The 35.0% conversion premium priced at the company-friendly and high end of the marketed range

Amphastar successfully repurchased $50mm of stock

JWCA supported the management team on the day of offering, providing execution advice and ensuring a high-quality execution