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

november 2021 | read press release

Transaction Background

In August 2021, JWCA advised Burlington Stores’ (“BURL” or the “Company”) on the exchange of ~$160mm of its 2025 convertible. BURL wanted to repurchase an additional portion of the 2025 convert 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

  • Accounting and tax analysis around the extinguishment of the existing convertible notes for cash and stock

Results

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

  • Repurchased $72.3mm of their convertible notes (~11% of outstanding) for cash. In combination with the exchange execution in August, Burlington has now retired 29% of the original $805mm convertible issuance

  • Saved an additional ~$5.5mm of cash interest over the remaining life (~$18.6mm in combination with August exchange)