JWCA advises insulet on its $201.3 million convertible bond offering
june 2014 | read press release
Transaction Background
J. Wood Capital Advisors was hired by Insulet to evaluate its capital structure, then execute a new convertible issuance in a smarter, more efficient manner:
Assisted the Insulet team with comparative analytics around exchanging vs. repurchasing the existing 3.75% Senior Unsecured Convertible Notes due 2016
Specifically designed the strategy and execution process to meet the company's objectives:
- Lowered the coupon and cash interest expense, raised the conversion price, and effectively extended the maturity of the existing convertible
Overnight execution, so the company had no market risk
Designed the repurchase strategy in order to mitigate any impact on the company's stock price
Assisted the team with documentation, accounting, and tax review
Reviewed all documents to ensure more company-friendly provisions
Provided advice, support and analysis during the execution
“Jason and Katy had our best interests in mind when they designed this execution. They consistently put our objectives first - that is why they have a bright future in this business.”
Results
JWCA helped deliver the following results:
The company executed a successful liability management exercise:
Lowered the coupon from 3.75% to 2.00%, and raised the conversion price from $26.20 to $46.51
Priced at the company-friendly end of the coupon and conversion premium ranges
Pushed out maturity ~3 years
Repurchased 60% of their existing 3.75% convertible notes due 201