JWCA advises Snap on its upsized $1.5 billion convertible issuance and capped call

February 2022 | read press release

Transaction Background

Snap successfully raised an upsized $1.5 billion (inclusive of greenshoe) in the convertible market at highly attractive terms (0.125% coupon and 50.0% conversion premium)

Snap engaged J. Wood Capital Advisors to assist in the structuring, negotiation, documentation and execution of its transaction

JWCA provided extensive analysis for Snap on deal structuring and related items, such as:

• Convertible structuring

• Derivative overlay structuring

• Derivative overlay upper strike to minimize future dilution

• Convertible and capped call documentation advice to ensure maximum value and future efficiency/flexibility for the company

• Advice on timing and when to go to market

JWCA designed and ran a capped call auction process to achieve competitive terms

JWCA provided advice, support and analysis throughout the negotiation and execution process

Results

Snap’s convertible issuance represented the first “mega” convertible deal of 2022

Despite broader market volatility and concerns around inflation and rising interest rates, Snap’s convertible issuance was very well-received by investors:

• The 0.125% coupon and 50.0% conversion premium represented the company-friendly end of both the coupon and conversion premium ranges

• The deal was upsized to $1.5 billion (inclusive of greenshoe)