JWCA advises MONGODB on its $300 million DEBUT convertible bond AND CAPPED CALL

JUNE 2018 | read press release

Transaction Background

MongoDB’s stock was up 80%+ in 2018, and the Company was interested in tapping the convertible market for new capital.  MongoDB chose JWCA to serve as its Financial Advisor in its convertible issuance and capped call execution due to JWCA’s depth of expertise in convertibles, lack of conflicts, and comprehensive support capabilities

JWCA provided extensive analysis to aid in MongoDB’s decisions:

• Optimal maturity

• Syndicate selection, economics and fees

• Accounting treatment for convertible, call spread vs capped call, and early extinguishment scenarios

• Change of control and make-whole mechanics

• Tax integration of call spread vs capped call

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

Results

MongoDB executed a successful convertible issuance in spite of strong risk-off sentiment on execution day:

• Strong investor demand enabled an increase in the base deal size from $200mm to $250mm

Capped call documentation and negotiation process produced meaningful savings for MongoDB