JWCA advises Burlington Stores on the repurchase of additional convertible notes for cash

march 2023 | read press release

Transaction Background

In August 2021, JWCA advised Burlington Stores’ (the “Company”) on an initial exchange of ~$160mm of its 2025 convertible. The following November and March, JWCA advised Burlington on an additional ~$72mm repurchase and ~$56mm repurchase of the convertible.

In March 2023, Burlington wanted to continue its plan to quickly and efficiently de-lever the balance sheet

Burlington’s objectives included:

• De-lever: retire the convertible to lower debt balance and interest expense

• Minimize transaction and friction costs; execute as efficiently as possible

JWCA acted as Repurchase Agent for the transaction and provided analysis and advice around:

• Tactics around investor targeting and execution method

• Investor outreach, negotiation, and execution of repurchases

Results

The Company executed a successful liability management transaction for its 2.25% convertible notes due 2025:

• Repurchased $110.3mm of their convertible notes (~22% of outstanding) for cash. In combination with the previous transactions, Burlington has now retired ~50% of the original $805mm convertible issuance

• Saved an additional ~$5.2mm of cash interest over the remaining life (~$27.7mm in total)