JWCA advises inVITAE on its UPSIZED $350 million convertible bond ISSUANCE

Transaction Background

With its stock price doubling year-to-date, Invitae was interested in raising capital to repay its existing debt and fund its growth initiatives

Invitae’s objectives

Take advantage of strong market conditions to raise meaningful growth capital
Repay debt to remove restrictive covenants and increase financial flexibility
Fund international expansion, infrastructure investment, working capital, and other general corporate purposes including future M&A
Reduce interest expense so even with the additional capital raised, cash interest cost is essentially unchanged

JWCA analyzed a range of alternatives for Invitae that could help the Company meet its short- and long- term objectives

JWCA advised Invitae on deal structuring and related items, including:

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

Results

Invitae convertible issuance was very well-received by investors:

Company was able to achieve pricing in the midpoint of the marketed range (2% coupon and 40% conversion premium) while increasing base deal size from $200mm to $300mm

Convert priced better than recent precedent healthcare deals (2016 – 2019 YTD):