JWCA advises Ionis Pharmaceuticals on its $575 million convertible bond issuance and re-financing of outstanding convertible notes
JUNE 2023 | Read PRESS RELEASE
Transaction Background
Ionis successfully raised $575mm in the convertible market at attractive terms (1.75% coupon and 32.5% conversion premium), while refinancing ~$434mm (79%) of the convertible due 2024
Company objectives:
Refinance majority of convertible due in December 2024
Minimize stock price risk by targeting long only investors
JWCA provided extensive analysis for Ionis on deal structuring and related items, such as:
Convertible refinancing and stock impact
Repurchase analysis and execution strategy
Syndicate structure and precedent data
Shareholder messaging
Advice on pricing on the day of execution
This transaction is the 5th time JWCA has assisted Ionis in convertible executions. Prior transactions include:
$633mm convertible issuance and simultaneous repurchase of existing convert in 2021
$549mm convertible exchange and new issuance in 2019
$183mm convertible exchange in 2016
$500mm convertible new issuance in 2014
The transaction was conducted privately using a one-day wall cross process, before flipping into a normal day of public marketing
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 confidential marketing allowed the Company to build a strong order book of long-only investors and send a strong signal going into the public marketing process
The coupon priced at the midpoint of the marketed coupon range and at the high end of the marketed conversion premium range
Refinanced ~79% of the Company’s 2024 convertible notes at a small premium to market price