JWCA advises AMAG Pharmaceuticals on its upsized $300 million convertible bond offering
may 2017 | read press release
Transaction Background
J. Wood Capital Advisors was hired by AMAG Pharmaceuticals to help reorganize its capital structure. Objectives included:
Match term structure of liabilities to maturity of product portfolio
Maximize flexibility and “dry powder”
JWCA also provided extensive analysis and evaluation of all options for Management and Board of Directors in light of:
Liquidity management
Pro-forma maturity profiles and financing costs
Transaction fees and market impact
Potential equity dilution
Tax efficiency
JWCA designed the strategy and execution process to meet the Company’s objectives. This included repaying and terminating their existing credit facility and repurchasing $159mm of their existing convertible notes. JWCA also assisted the team with documentation, accounting and tax review, while providing advice, support and analysis throughout the negotiation and execution process.
“Jason, Katy and team spent a considerable amount of time working with us to execute a successful convertible issuance and simultaneous repurchase. Throughout the process, they were an extension of our team, and provided great partnership on the strategic and tactical elements of our convertible debt transactions.”
Results
AMAG Pharmaceuticals executed a successful liability management exercise:
Strong investor demand led to an upsized offering of $300mm versus a base deal size of $250mm
Reduced overall leverage by nearly 20%
Pushed out liability profile by 3 years, with no maturities coming due until 2022
The Company's de-levering was viewed favorably by ratings agencies, with senior unsecured notes due 2023 to BB- from B+ by S&P and Ba3 from B3 by Moody’s