JWCA advises Mesa Laboratories on the repurchase of $75mm of convertible notes for cash

April 2024 | read press release

Transaction Background

In April 2024, JWCA advised Mesa Laboratories (“MLAB”) on the cash repurchase of $75mm of its outstanding 2025 convertible. Concurrently, Mesa Labs amended and extended their existing credit facility, to include a new term loan and an upsized revolving credit facility

Mesa Labs’ objectives included:

  • De-lever: retire a portion of the 2025 convertible

  • Capture an attractive yield-to-maturity by purchasing the notes at a meaningful discount to par

  • Run a reverse auction process to capture the lowest possible discount

  • Minimize transaction and friction costs: execute as efficiently as possible with a focus on minimizing execution costs

In its role as Repurchase Agent for the transaction, JWCA provided the following support for the Company:

  • Provided analysis and advice around tactics related to investor targeting and engagement

  • Led the investor outreach, negotiation, and execution of repurchases

  • Assisted the Company with the analysis of convertible economics and pricing dynamics

Results

Mesa Labs executed a successful liability management transaction for its 1.375% convertible notes due 2025:

  • MLAB repurchased $75mm face value of their convertible notes (~43.5% of outstanding) for cash at a meaningful discount to par