JWCA advises Rambus on the repurchase of ~$123mm convertible notes for cash and unwind of corresponding call spread

March 2022 | READ PRESS RELEASE

In March 2022, JWCA advised Rambus (“RMBS” or the “Company”) on the repurchase of ~$123mm of its 2023 convertible. RMBS wanted to repurchase their notes quickly and efficiently to manage their liability ahead of maturity in 2023.

Rambus’ objectives included:

• De-lever: retire the convertible to lower debt balance and interest expense

• Minimize transaction and friction costs; execute as efficiently as possible

JWCA acted as Repurchase Agent for the transaction and provided analysis and advice around:

• Tactics around investor targeting and execution method

• Investor outreach, negotiation, and execution of repurchases

• Managed call spread unwind negotiation process

Results

• The Company executed a successful liability management transaction for its 1.375% convertible notes due 2023:

  • Repurchased $123.1mm of their convertible notes (~71% of outstanding) for cash

  • Successfully managed their convertible note liability ~0.9 years to maturity

  • Call spread unwind negotiations produced meaningful savings for the Company

  • Saved an additional ~$1.5mm of cash interest over the remaining life