JWCA advises Affirm Holdings on the repurchase of ~$229mm convertible notes for cash at meaningful discount to par
february 2023 | read press release
Transaction Background
In February 2023, JWCA advised Affirm (“AFRM” or the “Company”) on the cash repurchase of ~$229mm of its outstanding 2026 convertible. Affirm wanted to opportunistically repurchase their notes at a discount to par to opportunistically manage their outstanding liabilities and capital structure.
Affirm’s objectives included:
De-lever: retire a portion of the convertible to reduce debt outstanding
Capture a sizeable yield-to-maturity by purchasing the notes at a meaningful discount to par
Save a significant amount of cash at maturity by retiring existing convertible below par today
Minimize transaction and friction costs: execute as efficiently as possible with a focus on minimizing execution costs
JWCA acted as Repurchase Agent for the transaction:
Provided analysis and advice around tactics related to investor targeting and engagement
Led the investor outreach, negotiation, and execution of repurchases
Results
The Company executed a successful liability management transaction for its 0% coupon convertible notes due 2026:
The Company paid an aggregate amount of ~$158mm in cash for the repurchase of ~$229mm of their convertible notes, which reflected a meaningful discount to par
About $1.5 billion in aggregate principal amount of 2026 Notes remain outstanding