JWCA advises Invitae Corporation on its $336 million convertible exchange, equitization, and new capital raise

February 2023 | read press release

Transaction Background

Invitae Corporation (“Invitae” or “the Company”) engaged J. Wood Capital to advise on the refinancing of its $350mm convertible due 2024

Invitae's objectives were to:

• Address financing overhang to allow company to focus on business execution

• Extend 2024 convertible into new 5-year maturity despite high debt-to-market cap ratio and limited stock borrow

• Add incremental cash to balance sheet

• Minimize covenants to maximize strategic and operational flexibility

JWCA acted as financial advisor to Invitae on its exchange and new issuance, providing the following support for the Company:

• Analyzed range of capital structure transactions to help Company assess tradeoff between leverage and dilution

• Designed highly customized secured 1st-lien convertible security, negotiating with lead investor on pricing, economic terms, covenants, and security package

• Assisted the company with accounting treatment, investor messaging, and documentation review

Results

Invitae addressed ~96% of its 2024 maturity by refinancing $306mm into a combination of new secured convertible and equity while raising $30mm in new secured convertible to partially pre-fund remaining 2024 maturity

• Extends debt maturity profile to ~5 years while balancing equity dilution

• Provides management meaningful runway to continue growing the business