JWCA advises Avadel on its $106.3 million convertible exchange, in conjunction with a simultaneous equity and royalty financing

march 2023 | read press release

Transaction Background

In March of 2022, J. Wood Capital Advisors helped Avadel Pharmaceuticals (“AVDL” or the “company”) extend maturity on $117.4mm of its exchangeable bonds to October of 2023.  Subsequently, the Company has achieved a number of important milestones, and desired to re-finance the October 2023 maturity and fund the commercialization of their lead product

Avadel’s objectives included:

• Address financing overhang to allow company to focus on business execution

• Extend exchangeable into a new 4-year maturity despite limited stock borrow

• Raise additional capital through equity and royalty

• Minimize market risk and transaction costs

JWCA acted as a financial advisor for the exchange and new issuance, providing the following support for the Company:

• Walked through tactics for optimal execution

• Helped in investor outreach and execution of exchange

• Assisted the team with documentation and settlement

Results

Avadel successfully exchanged ~82% of the existing 2023 exchangeable into a new 4-year exchangeable

The exchange was conducted confidentially with select investors, minimizing market risk for the Company.  The simultaneous equity transaction was priced on an overnight basis, and represented only a 4.4% discount to last sale

The exchange will provide the Company with additional time for successful development, regulatory approval and commercialization of FT218