JWCA advises Global Blood Therapeutics on its inaugural $345 million convertible and capped call issuance

December 2021 | read press release

Transaction Background

Global Blood Therapeutics, Inc. (“GBT” or the “Company”) successfully raised $345mm, inclusive of greenshoe, in the convertible market at attractive terms

GBT’s objectives:

• Take advantage of strong convertible market conditions and momentum behind positive data readouts

• Raise capital for continued commercialization, pipeline development, and other general corporate purposes while minimizing dilution

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

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

• Convertible and derivative overlay structuring

• Scenario analysis and support on negotiations with incumbent senior debt lender

• Analysis of accounting impact

• Convertible and capped call documentation to ensure maximum value and future efficiency/flexibility for the company

• Syndicate structure and precedent data

• Shareholder messaging

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

JWCA provided advice, support, and analysis throughout the execution process

Results

GBT executed a successful upsized convertible issuance:

• The transaction was multiple times oversubscribed, reflecting strong investor interest and demand for the Company’s debut offering, including large outright allocations that drove the upsizing

• JWCA supported 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 GBT, while maximizing flexibility for the Company