JWCA advises Fastly on the repurchase of ~$90mm convertible notes for cash at a meaningful discount to par

november 2023 | read press release

Transaction Background

In November 2023, JWCA advised Fastly (the “Company”) on the cash repurchase of an additional ~$90mm of its outstanding 2026 convertible, following its ~$236mm convertible repurchase in May. Fastly wanted to repurchase their notes at a significant discount to par to opportunistically manage their outstanding liabilities and capital structure.

Fastly’s objectives included:

  • De-lever: retire a portion of the convertible to reduce debt balance

  • Capture a sizeable yield-to-maturity by purchasing the notes at a meaningful discount to par, while also saving a significant amount of cash at maturity

  • 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:

  • Led the investor outreach, negotiation, and execution of the repurchase

  • Assisted the company with the analysis of convertible economics and pricing dynamics

Results

The Company executed a successful liability management transaction for its 0.00% coupon convertible notes due 2026:

  • The Company repurchased ~$90mm face value of their convertible notes (~19% of outstanding) for cash at a meaningful discount to par

J. Wood Capital has now advised on two convertible repurchase transactions by Fastly in 2023, representing ~$327mm in total principal amount