JWCA ADVISES QUIDEL ON an exchange of their 3.25% convertible notes due 2020 into common equity

MARCH 2018 | read press release

Transaction Background

Quidel showed exceptionally strong operating results in 2017, leading to a ~100% increase in stock price.  The high stock price presented an opportunity to retire the debt early by delivering a modest number of shares in excess of the original conversion rate, since deep in-the-money convertible bonds have low “option value” for investors

Company objectives:

• Reduce debt

• Minimize EPS impact

• Equitize as much convertible as possible with minimal stock price impact

JWCA assisted Quidel to optimize the execution, through analysis of:

• Share price scenarios

• Liquidity and cash savings

• Potential trading impact

• Investor targeting

Results

The Company executed a successful liability management transaction for its 3.25% convertible notes due 2020:

• Exchanged ~63% of their 3.25% convertible senior notes due 2020 for common equity

Retired $108.8 million principal amount of debt

• Saved an estimated ~$9.0 million of cash interest over the remaining life