IIIV.png

JWCA advises i3 verticals on its UPSIZED $138 million EXCHANGEABLE AND CALL SPREAD

FEBRUARY 2020 | read press release

Transaction Background

i3 Verticals took advantage of strong convertible market conditions and a stock price that was just 7% below its all-time high at launch and raised $120mm in low-cost capital in the convertible market

Use of proceeds was to purchase a call spread and to repay borrowings under its Senior Secured Credit Facility

i3 engaged J. Wood Capital Advisors to assist in the structuring, negotiation, documentation and execution of its transaction

JWCA provided valuable insight and expertise for i3 in its preparation, including:

  • Navigating the specifics of i3’s corporate structure, and the associated impact to the structuring of the exchangeable and call spread

  • Updating the exchangeable bond and call spread documentation to ensure maximum value and future efficiency/flexibility for the company

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

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

Results

i3 Verticals’ exchangeable issuance was well-received by investors:

  • Due to strong demand, base deal size was upsized from $100mm to $120mm

  • Coupon and conversion premium priced at the midpoint of the marketed coupon and premium ranges, respectively

JWCA was in i3’s offices with the management team on the entire day of the offering providing execution advice and ensuring a high-quality execution

Call spread documentation and auction process produced millions in savings for i3, while protecting the Company in certain unwind scenarios