JWCA advises MONGODB on its $1.15 BIllion convertible bond AND CAPPED CALL

January 2020 | read press release

Transaction Background

MongoDB grew its business tremendously in 2018 and 2019, both organically and through acquisition, with help from capital raised in its 2018 convertible issuance (also advised by JWCA).  Its revenue increased over 130% while market cap increased nearly 6x.  To continue to invest in further growth and refinance its existing convertible, MongoDB again sought to raise capital through convertible debt.

JWCA was instrumental in executing the convertible issuance in a very tight time frame, allowing the Company to make key decisions quickly, including:

• Offering size

• Bank relationship management and syndicate structure

• Investor targeting

• Accounting for convertible new issuance and repurchase

• Capped call documentation

• Unwind of existing capped call

JWCA also designed and ran a capped call auction process to achieve competitive terms

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

Results

MongoDB executed a successful convertible issuance:

• Strong investor demand enabled an increase in the base deal size from $750mm to $1,000mm

• Priced at Company-friendly end of conversion premium (42.5% vs 37.5 – 42.5%)

Capped call documentation and auction process produced meaningful savings for MongoDB, while mitigating future downside scenarios