JWCA advises Snap on its inaugural $1.5 billion high yield issuance and convertible repurchases
February 2025 | read press release
Transaction Background
Snap, Inc. (“Snap” or “the Company”) wanted to refinance its existing convertible debt and raise additional capital through the straight debt markets. Snap engaged J. Wood Capital Advisors (“JWCA”) to advise on its inaugural high yield financing and simultaneous convertible repurchases
The Company’s objectives included:
Opportunistically repurchase outstanding 2026, 2027 & 2028 convertible notes at a discount to par to manage outstanding liabilities and maturity stack
Raise fixed-rate, senior unsecured debt in the high yield market, with an investment grade covenant package
Mitigate future dilution
Diversify investor base
Minimize costs for new issue and repurchases of existing convertible debt
JWCA advised on the issuance of the new bond & the repurchase process, including:
Strategy, pricing and terms throughout the negotiation process
Refinancing tactics of outstanding 2026, 2027, and 2028 convertible notes
Analysis & advice with respect to the outstanding derivative overlays
Results
Snap's inaugural issuance was well received, allowing for upsizing the issuance twice while in market, and pricing at the tight end of talk
Opportunistically retired for cash ~$1,643mm of existing 2026, 2027 & 2028 convertible notes at a discount to par, effectively extending the Company’s debt maturities out 5-7 years, marginally de-levering and mitigating future dilution, while diversifying its capital sources with a new investor base