JWCA Advises X Holdings I, Inc. on its $2.59 billion call spread unwinds related to its Twitter acquisition

OCTOBER 2022 | read press release

Transaction Background

J. Wood Capital Advisors was hired by X Holdings I, Inc. to advise on its Call Spread Unwind related to its acquisition of Twitter, originally announced on April 4, 2022

X Holdings I and management elected to retain JWCA based on:

• Truly independent advisor, with no conflicts of interest

• Depth of experience in equity-linked derivatives (with over 50 capped call/call spread unwinds, JWCA has more relevant experience than any other advisor)

JWCA negotiated with each of Twitter’s call spread counterparties in order to maximize the value delivered to the Company

JWCA performed independent modeling and statistical analyses, including volatility surface mapping, along with other proprietary methodologies to negotiate with each counterparty and maximize value to the client

Results

JWCA engaged directly with the counterparty banks on negotiations, and JWCA was successful in maximizing the call spread payout, saving the client significant value versus the counterparties’ initial indications

JWCA was able to perform the above negotiation without impacting other aspects of the acquisition process