JWCA advises benefitfocus on the repurchase of their convertible notes for cash

Transaction Background

Benefitfocus was interested in opportunistically retiring a portion of their existing convert prior to maturity at a discount to par

Benefitfocus’ objectives included:

Repurchase the convertible to reduce leverage, reduce interest expense, and improve capital structure
Minimize transaction and friction costs; execute as efficiently as possible overnight

JWCA acted as repurchase agent for the transaction and provided analysis and advice around:

Tactics around investor targeting and negotiation
Balancing repurchase considerations to minimize purchase price and friction costs
Designing the execution method and documentation
Outreach and execution of repurchases with convertible investors

Results

The Company executed a successful liability management transaction for its 1.25% convertible notes due 2023:

Repurchased $100.2mm of their 1.25% convertible notes due 2023 for cash
Saved an estimated $2.8 million of cash interest expense over the remaining life