JWCA advises Accolade on the repurchase of ~$76.5mm convertible notes for cash

November 2023 | read press release

Transaction Background

In November 2023, JWCA advised Accolade, Inc. (“ACCD”) on the cash repurchase of ~$76.5mm of its outstanding 2026 convertible. Accolade wanted to opportunistically deploy excess cash and manage their outstanding liability and capital structure.

Accolade’s objectives included:

• De-lever: retire a portion of the 2026 convertible to reduce debt balance

• Capture an attractive yield-to-maturity by purchasing the notes at a meaningful discount to par, which leads to ~$10mm in cash savings versus leaving the debt outstanding

• Minimize transaction and friction costs: execute as efficiently as possible with a focus on minimizing execution costs

In its role as Repurchase Agent for the transaction, JWCA provided the following support for the Company:

• Provided analysis and advice around tactics related to investor targeting and engagement

• Led the investor outreach, negotiation, and execution of repurchases

• Assisted the company with the analysis of convertible economics and pricing dynamics

Results

Accolade executed a successful liability management transaction for its 0.50% convertible notes due 2026:

• ACCD repurchased ~$76.5mm face value of their convertible notes (~27% of outstanding) for cash at a meaningful discount to par