JWCA advises Bandwidth on the repurchase of ~$27 million convertible notes for cash
february 2025 | READ PRESS RELEASE
In February 2025, JWCA advised Bandwidth (the “Company”) on the cash repurchase of an additional ~$27mm of its outstanding 2026 convertible notes, following its $140mm convertible repurchase in May 2024. Bandwidth wanted to opportunistically repurchase the majority of remaining outstanding 2026 notes at a discount to par to prudently manage its outstanding liability and capital structure
Bandwidth’s objectives included:
De-lever: retire a significant portion of the convertible to reduce debt balance
Timing: enter into convertible repurchase agreements ahead of reporting Q4 2024 earnings
Preserve cash at maturity by retiring outstanding 2026 convertible notes below par today
JWCA acted as Repurchase Agent for Bandwidth and provided the following support for the Company:
Tactics around execution method, including benefits and considerations around engaging investors before or after earnings announcement
Investor targeting, outreach, price negotiation and execution of repurchases
Assisted the Company with the analysis of convertible economics and pricing dynamics
Results
The Company executed a successful liability management transaction for its 0.25% convertible notes due 2026:
The Company repurchased ~$27mm face value of their remaining 2026 convertible notes (~78% of outstanding) for cash at a discount to par
Bandwidth has now retired ~98% of the original $400mm convertible issuance in combination with previous convertible repurchase transactions
This is JWCA’s fifth advisory assignment for the Company after advising Bandwidth on its convertible issuance in February 2020 and 4 subsequent repurchases