JWCA advises JBT Corporation on its debut convertible bond and call spread transaction
May 2021 | read press release
Transaction Background
JBT successfully raised $402.5mm in the convertible market at attractive terms (0.25% coupon and 32.5% conversion premium)
Company objectives:
Take advantage of strong convertible market conditions
Raise capital for general corporate purposes, including potential acquisitions
JWCA provided extensive analysis for JBT 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
Shareholder messaging
Advice on pricing on the day of execution
JWCA designed and ran a call spread auction process to achieve competitive terms
JWCA provided advice, support and analysis throughout the execution process
Results
JBT’s convertible issuance was very well-received by investors
The transaction was multiple times oversubscribed, reflecting strong investor interest in and demand for the Company’s offering
JBT’s stock price traded down 5.1% on a day where comparable convertible issuers stock prices usually trade down 7 – 9% on the pricing date
32.5% conversion premium and 0.25% coupon priced at the midpoint of the marketed premium and coupon range
Call spread documentation and auction process produced meaningful savings for JBT, while maximizing flexibility for the Company