JWCA acts as placement agent for MACOM Technology Solutions on its $344 million convertible exchange, equitization, and capital raise
dECEMBER 2024 | read press release
MACOM Technology Solutions (“MACOM”, or the “Company”) was interested in refinancing the upcoming maturity of its 2026 convertible
MACOM's objectives for the refinancing transaction included:
Achieve a ~4-year maturity extension for a majority ($289mm / ~65%) of its outstanding convertible notes due 2026 while restriking the conversion price
Minimize impact to net leverage and manage overall dilution of the transaction
Execute overnight without the stock price impact from a new 144A marketed convertible
JWCA acted as sole placement agent for the exchange and new issuance, providing the following support for the Company:
Advised on financing tactics and investor targeting to drive Company-friendly terms
Led the outreach and execution of placement and exchange with convertible investors
Analyzed range of capital structure transactions to help Company assess tradeoff between leverage and dilution
Assisted the company with economic analysis of alternatives, accounting and tax analysis
Results
MACOM issued $344mm in a new 0.00% convertible due 2029 at highly attractive terms (0.00% coupon and 27.5% conversion premium) overnight in a private placement with existing and new investors
Avoided stock price risk, as the exchange was executed overnight after a confidential marketing process with existing convertible investors
Refinanced ~65% of MACOM’s 2026 convertible while issuing a new 5-year convertible with a lower coupon and higher conversion price, and extending the existing maturity by ~4 years
Increased conversion price from $82.12 to $174.03
Reduced coupon from 0.25% to zero