JWCA advises MINDBODY on its $311 million DEBUT convertible bond AND CAPPED CALL

JUNE 2018 | read press release

Transaction Background

MINDBODY experienced strong revenue growth over the past year, and was interested in raising capital to finance its growth. MINDBODY selected JWCA as its financial advisor on the transaction to provide market knowledge, comprehensive execution support, and unbiased advice.

JWCA provided extensive analytics and support to aid in key decisions:

• Structuring:
  • Call spread vs capped call
  • Redemption feature vs bullet maturity
• Cost of capital analysis for a callable structure
• Change of control and make-whole mechanics
• Tax integration of capped call
• Accounting treatment of convertible and capped call
• Syndicate economics and fees
• Contract negotiations

JWCA provided advice, support and analysis throughout the negotiation and execution process

Results

MINDBODY’s convertible issuance was well-received by investors:

• Strong investor demand led to an upsize from a base deal size of $200mm to $270mm

Capped call documentation and negotiation process produced meaningful savings for MINDBODY.