JWCA advises Cardtronics on the repurchase of their convertible notes and unwind of the associated call spread overlay
June 2020
Transaction Background
After securing funding to refinance the convertible, Cardtronics was interested in retiring the near-dated maturity debt prior to maturity
Cardtronics' objectives included:
Repurchase the convertible to minimize interest expense
Minimize transaction and friction costs; execute as efficiently as possible
JWCA acted as financial advisor for the repurchase and provided analysis and advice around:Evaluating cost of capital of structural alternatives
Tactics around investor targeting and negotiation
Balancing repurchase considerations to minimize purchase price and friction costs
Outreach and execution of repurchases with convertible investors
Analysis and support regarding the call spread overlay
Results
The Company executed a successful liability management transaction for its 1.00% convertible notes due 2020:
Repurchased $171.9mm of their 1.00% convertible notes due 2020 for cash
Saved an estimated $1.5 million by repurchasing the notes early
JWCA helped negotiate the call spread unwind with the banks, which resulted in meaningful savings for the Company