JWCA advises Opendoor on the repurchase of an additional ~$279mm of its convertible notes for cash at meaningful discount to par
May 2023 | read press release
Transaction Background
In March 2023, JWCA advised Opendoor (“OPEN” or the “Company”) on the cash repurchase of ~$189mm of its 2026 convertible.
In May 2023, Opendoor wanted to prudently manage its liability and capital structure by opportunistically repurchasing an additional portion of the 2026 convertible at a significant discount to par
OPEN’s objectives included:
De-lever: retire a portion of the convertible to reduce debt balance and interest expense
Capture a sizeable yield-to-maturity by purchasing the notes at a meaningful discount to par, while also saving a significant amount of cash at maturity
Minimize transaction and friction costs: execute as efficiently as possible with a focus on minimizing execution costs
JWCA acted as Repurchase Agent for the transaction:
Provided analysis and advice around tactics related to investor targeting and engagement
Led the investor outreach, negotiation, and execution of repurchases
Results
The Company executed a successful liability management transaction for its 0.25% coupon convertible notes due 2026:
he Company paid an aggregate amount of ~$169mm in cash for the repurchase of ~$279mm of their convertible notes, which reflected a meaningful discount to par
Saved an additional ~$2mm of cash interest over the remaining convertible life
In combination with the repurchase execution in March 2023, Opendoor has now retired 48% of the original $978mm convertible issuance