JWCA advises benefitfocus on the repurchase of their convertible notes for cash

September 2021 | read press release

Transaction Background

Benefitfocus was interested in opportunistically retiring a portion of their existing convert prior to maturity at a discount to par

Benefitfocus’ objectives included:

  • Repurchase the convertible to reduce leverage, reduce interest expense, and improve capital structure

  • Minimize transaction and friction costs; execute as efficiently as possible overnight

JWCA acted as repurchase agent for the transaction and provided analysis and advice around:

  • Tactics around investor targeting and negotiation

  • Balancing repurchase considerations to minimize purchase price and friction costs

  • Designing the execution method and documentation

  • Outreach and execution of repurchases with convertible investors

Results

The Company executed a successful liability management transaction for its 1.25% convertible notes due 2023:

  • Repurchased $100.2mm of their 1.25% convertible notes due 2023 for cash

  • Saved an estimated $2.8 million of cash interest expense over the remaining life