JWCA advises herbalife on its $1.2 billion convertible bond and call spread
february 2014 | read press release
Transaction Background
JWCA was hired by Herbalife to assist with its convertible execution:
Led a process to achieve best terms for the company
Created an RFP; interviewed banks with senior management and members of the Board
Assisted Herbalife team with documentation, accounting, and tax review
Reviewed all documents to ensure more company-friendly provisions
Ran auction process to bid out the call spread
Provided advice, support and analysis during the execution
“Jason provided great support for our team in our convertible execution. His experience helped us navigate the decisions we had to make, and it was clear that he had our best interests in mind. He also helped reduce the costs involved.”
Results
JWCA helped deliver the following results:
Obtained backstop for the convertible pricing to promote certainty of execution: the overall market was down nearly 3% during our day of execution; this backstop provided comfort to the Board during the day as risk was higher than expected
Reduced underwriting fees by 15%: Successful in minimizing underwriting expense while obtaining attractive capital commitments from underwriters
Reduced call spread cost by 7%