JWCA advises Ionis Pharmaceuticals on its $632.5 million convertible bond issuance, call spread purchase, and repurchase of outstanding convertible notes
aPRIL 2021 | Read PRESS RELEASE
Transaction Background
Ionis successfully raised $632.5mm in the convertible market at attractive terms (0.00% coupon and 32.5% conversion premium), while refinancing $248mm (80%) of the convertible due 2021
Company objectives:
Manage a short-term liability and refinance a convertible due in November 2021
Raise additional capital for general corporate purposes, including expansion of manufacturing, R&D, and commercial infrastructure to support upcoming drug pipeline
JWCA provided extensive analysis for Ionis on deal structuring and related items, such as:
Convertible and derivate overlay structuring
Convertible and call spread documentation to ensure maximum value and future efficiency/flexibility for the Company
Syndicate structure and precedent data
Repurchase analysis and execution strategy
Shareholder messaging
Advice on pricing on the day of execution
JWCA designed and ran a call spread auction process to achieve competitive terms
This transaction is the 4th time JWCA has assisted Ionis in convertible executions. Prior transactions include:
$549mm convertible exchange and new issuance in 2019
$183mm convertible exchange in 2016
$500mm convertible new issuance in 2014
Results
Ionis’ convertible issuance was very well-received by investors
The transaction was multiple times oversubscribed, reflecting strong investor interest and demand in the Company’s offering
The zero coupon was the 33rd convertible debt offering this year to achieve a 0% coupon
32.5% conversion premium priced at the midpoint of the marketed premium range
The base deal size was upsized from $500mm to $550mm
Refinanced 80% of the Company’s 2021 convertible notes at a small premium to market price
Call spread documentation and auction process produced meaningful savings for Ionis, while maximizing flexibility for the Company