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JWCA advises Cardtronics on the repurchase of their convertible notes and unwind of the associated call spread overlay

June 2020

Transaction Background

After securing funding to refinance the convertible, Cardtronics was interested in retiring the near-dated maturity debt prior to maturity

Cardtronics' objectives included:

  • Repurchase the convertible to minimize interest expense

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

JWCA acted as financial advisor for the repurchase and provided analysis and advice around:Evaluating cost of capital of structural alternatives

  • Tactics around investor targeting and negotiation

  • Balancing repurchase considerations to minimize purchase price and friction costs

  • Outreach and execution of repurchases with convertible investors

  • Analysis and support regarding the call spread overlay

Results

The Company executed a successful liability management transaction for its 1.00% convertible notes due 2020:

  • Repurchased $171.9mm of their 1.00% convertible notes due 2020 for cash

  • Saved an estimated $1.5 million by repurchasing the notes early

JWCA helped negotiate the call spread unwind with the banks, which resulted in meaningful savings for the Company