JWCA advises Radius HEALTH on its $175 million credit facility and repurchase of ~37% of its existing 2024 convertible notes

march 2021 | read press release

Transaction Background

Radius Health, Inc. (“Radius” or the “Company”) wanted to raise new secured debt capital to opportunistically retire a portion of its existing convertible prior to maturity. J. Wood Capital Advisors was hired to advise on both the debt financing and the convertible repurchase.

Objectives:

• Optimize capital structure by using more secured debt capacity to take out a portion of potential equity dilution exposure from the convertible

• Low cost of capital and refinancing flexibility

• Capture a debt discount on the convertible repurchase

• Minimize friction costs and execute as efficiently as possible

JWCA ran a process to identify lenders that could best help Radius achieve its objectives. Upon obtaining terms from lenders, JWCA:

• Negotiated with lenders on the Company’s behalf to obtain the best terms available

• Analyzed terms to help company select the proposal that best met its objectives

On the convertible repurchase, JWCA provided analysis and advice around:

• Investor targeting strategy

• Timing and sequencing of executing both transactions

• Structuring and documentation

• Outreach and negotiation of repurchases with convertible investors

Results

• Radius successfully executed the debt financing with its incumbent lender MidCap at best-available terms, pricing, and flexibility

• The company executed a successful repurchase of ~37% of convertible notes due 2024 at a ~6% discount to par, while adding some cash to the balance sheet