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JWCA advises INVITAE CORPORATION ON ITS $1.15 BILLION PRIVATE CONVERTIBLE INVESTMENT LED BY SB MANagement, a subsidiary of softbank group corp.

april 2021 | read press release

Transaction Background

Invitae Corporation (“Invitae” or the “Company”) successfully raised $1.15 billion in a private convertible financing to support the Company’s growth initiatives

The Company’s objectives included:

  • Raising significant proceeds to fund organic and inorganic growth

  • Partnering with strategic investors that can help accelerate its business plan

  • Minimizing market and stock price risk

J. Wood Capital Advisors LLC (“JWCA”) helped initiate discussions between the lead investor and the Company and assisted in the structuring, negotiation, documentation, and execution of this transaction

JWCA provided analysis to the company on deal structuring and related items, including:

  • Convertible structuring: redemption options and implications on overall economics

  • Convertible valuation analysis

  • Provisional call and make-whole mechanics

  • Precedent private convertible investment terms and conditions

  • Comparison with publicly marketed 144A convertible alternative

  • Settlement alternatives and related accounting implications

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

Results

Invitae’s private convertible issuance was well-received by the market, with the stock up 3% on the first trading day following the announcement

The strategic investment of $1.15 billion provides Invitae with long-term strategic investors that share the Company’s vision of building a differentiated platform that uses genetics to improve healthcare