JWCA advises impinj on its upsized $287.5 million convertible

Transaction Background

Impinj wanted to refinance its existing convertible and lower its cost of capital

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

New convertible and repurchase consideration/structuring
Left existing capped call outstanding after extensive analysis
Accounting analysis/implications
Convertible documentation advice to ensure maximum value and future efficiency/flexibility for the company
Syndicate structure and precedent data

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

Results

Impinj’s results were very company-friendly:

Priced with a 1.125% coupon, which was lower than the marketed coupon range of 1.25 – 1.75%
Priced the conversion premium at 42.5%, which was the company-friendly end of the 37.5 – 42.5marketed range
Upsized the transaction by $25 million
Stock was up 7% on the day and closed at an all-time high

Retired ~$76mm (89%) of existing 2026 bonds with minimal cost

Effectively increased conversion price to $111.18 from $34.55 and lowered coupon to 1.125% from 2.00%