JWCA advises One Medical on its $275 million convertible bond issuance

May 2020 | read press release

Transaction Background

Following a successful IPO earlier in the year and stock price performance of +171% from the IPO price, 1Life Healthcare (DBA One Medical) wanted to raise opportunistic capital to invest in growth and further its mission to transform healthcare for all through a human-centered, technology-powered model

One Medical’s objectives:

• Raise capital at a premium to current stock price to minimize dilution

• Take advantage of strong and resilient market demand in the convertible market

• Raise primary capital without returning to equity markets

JWCA advised One Medical on deal structuring and related items, including:

• Issuer redemption and make-whole mechanics

• Investor messaging

• Accounting considerations

• Cost of capital

• Documentation

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

Results

One Medical convertible issuance was very well-received by investors:

• Overall book was ~2x oversubscribed

• Company was able to upsize the base deal by $25mm while executing conversion premium at the midpoint of the marketed range and coupon within the marketed range

JWCA advised management on the day of the offering, providing execution insight and ensuring a high-quality execution