JWCA advises rambus on its $100 million accelerated share repurchase
october 2015 | read press release
Transaction Background
J. Wood Capital Advisors acted as financial advisor to Rambus, and led the execution of the Company's accelerated share repurchase.
Evaluated various share repurchase strategies with Rambus' team upfront (including ASRs) in an unbiased and manner
Assisted the Rambus team with design, documentation, and accounting review
Created a process to achieve the best terms for Rambus:
- Led an auction process to drive the best ASR terms for Rambus
- Created the documents with the company upfront to ensure company-friendly provisions
Provided advice, support and analysis during the execution
“JWCA engaged early in the process and provided us with company friendly documentation to use, accounting memos and economic analysis for review. They then ran an auction process that delivered on every front – they lowered the cost of the ASR, executed with company-friendly documents, and made it a smooth and relatively painless process.”
Results
The auction process resulted in savings for the company (in the form of a higher discount to the share repurchase)
Rambus' shares outstanding were immediately reduced by ~7.8mm shares, nearly 7% of their shares outstanding