JWCA advises wright medical group on its $632.5 million convertible bond Offering

FEBRUARY 2015 | read press release

Transaction Background

JWCA advised Wright Medical in its assessment of its capital structure alternatives related to its pending merger with Tornier N.V., and then advised them on the execution of a new convertible issuance and refinancing

Provided capital structure analysis and advice related to:

• Recommended the repurchase of a significant portion of the Company’s existing 2.00% Convertible Notes due 2017, thereby pushing out maturity by 3+ years

• Issue a new convertible to refinance the existing Convertible

  • - Included the recommendation of a call spread to push out the effective conversion price to $40.00

  • - Structured the convertible and call spread to allow for the Company’s upcoming close of the TornierN.V. acquisition

Assisted the team with documentation, accounting, and tax review

Provided advice, support and analysis during the execution

Results

The Company executed a successful liability management exercise related to its convertible:

• Priced at the low end of the coupon range

• Priced at the high end of the conversion premium range

• Repurchased $240mm of their existing 2.00% convertible due 2017, thereby pushing out maturity on a sizable portion of their liability by 3+ years

• Due to strong investor demand, upsized the transaction from $400mm to $632.5mm, thereby adding meaningful cash to the balance sheet (Issuance size represented almost 48% of the company’s market cap)

• WMGI stock rose+1.8% on the day of execution (vs a typical decline of ~5%)