JWCA advises KBR on the early unwind of its warrants 

November 2023 | read press release

Transaction Background

After advising KBR (the “Company’”) on its repurchase of $100mm of its 2023 convertible in June 2023, KBR engaged JWCA to help unwind the outstanding call spread warrants ahead of their original maturity as well as to run the final settlement process for the convertible notes

KBR’s objectives included:

• Unwind the outstanding call spread warrants ahead of the Company’s fiscal year end

• Minimize the longer observation period for the warrants at maturity 

• Minimize the premium paid between the cost to unwind the warrants early and their intrinsic value

JWCA also assisted with KBR’s final maturity of its convertible:

• Recorded stock performance over the observation period for calculating final settlement amount of conversions

• Provided analysis for the Company required to manage accounting of final settlement determination

JWCA acted as financial advisor for the warrant unwind providing the following support for the Company:

• Managed the warrant unwind negotiation process with counterparty banks

• Coordinated with banks and legal teams to optimize the warrant unwind averaging periods

Results

The Company successfully was able to unwind the warrants with all of its counterparties with minimal friction cost 

The company was able to sequence the unwinds by having each counterparty manage their own hedging over time