JWCA advises BILL Holdings on the repurchase of an additional ~$234mm convertible notes for cash
May 2024 | read press release
Transaction Background
In May 2024, JWCA advised BILL Holdings (the “Company”) on the cash repurchase of an additional ~$234mm of its outstanding 2025 convertible, following its ~$748mm convertible repurchase in March 2024. BILL Holdings wanted to opportunistically repurchase additional notes at a discount to par to continue its plan to prudently manage its liability and capital structure
BILL Holdings’ objectives included:
De-lever at a discount: opportunistically retire a portion of the convertible to reduce the Company’s total debt balance at a discount
Minimize transaction and friction costs: execute as efficiently as possible with a focus on minimizing execution costs
In its role as Repurchase Agent for the transaction, JWCA provided the following support for the Company:
Provided analysis and advice around tactics related to investor targeting and engagement
Led the investor outreach, negotiation, and execution of repurchases
Assisted the Company with the analysis of convertible economics, pricing dynamics, and accounting impact
Managed capped call unwind negotiations
Results
BILL Holdings executed a successful liability management transaction for its 0.00% coupon convertible notes due 2025:
The Company repurchased ~$234mm face value of their convertible notes (~58% of outstanding) for cash at a discount to par
This is J. Wood’s fourth advisory assignment for the Company after advising BILL Holdings on its convertible issuances in November 2020 and September 2021 and convertible repurchase in March 2024