JWCA advises Dynavax on its inaugural $226 million convertible and capped call

Transaction Background

Dynavax Technologies Corporation (“Dynavax” or the “Company”) successfully raised $226mm in the convertible market at attractive terms

Dynavax’s objectives

Dynavax engaged J. Wood Capital Advisors to assist in the structuring, negotiation, documentation and execution of the transaction

JWCA provided extensive analysis for Dynavax on deal structuring and related items, including:

Convertible and derivative overlay structuring
Impact of early adoption of new accounting rules
Convertible and capped call documentation to ensure maximum value and future efficiency/flexibility for the company
Syndicate structure and precedent data
Shareholder messaging
Advice on pricing on the day of execution

JWCA designed and ran a capped call auction process to achieve competitive terms

JWCA provided advice, support and analysis throughout the execution process

Results

Dynavax executed a successful convertible issuance:

The transaction was oversubscribed, reflecting strong investor interest and demand in the Company’s debut offering
The 32.5% conversion premium represented the midpoint of the marketed conversion premium range

JWCA was with the management team on the entire day of the offering providing execution advice and ensuring a high-quality execution

Capped call documentation and auction process produced meaningful savings for Dynavax, while maximizing flexibility for the Company