JWCA advises Dynavax on its inaugural $226 million convertible and capped call
May 2021 | read press release
Transaction Background
Dynavax Technologies Corporation (“Dynavax” or the “Company”) successfully raised $226mm in the convertible market at attractive terms
Dynavax’s objectives
Take advantage of strong convertible market conditions
Repay higher coupon debt and increase financial flexibility
Dynavax engaged J. Wood Capital Advisors to assist in the structuring, negotiation, documentation and execution of the transaction
JWCA provided extensive analysis for Dynavax on deal structuring and related items, including:
Convertible and derivative overlay structuring
Impact of early adoption of new accounting rules
Convertible and capped call documentation to ensure maximum value and future efficiency/flexibility for the company
Syndicate structure and precedent data
Shareholder messaging
Advice on pricing on the day of execution
JWCA designed and ran a capped call auction process to achieve competitive terms
JWCA provided advice, support and analysis throughout the execution process
Results
Dynavax executed a successful convertible issuance:
The transaction was oversubscribed, reflecting strong investor interest and demand in the Company’s debut offering
The 32.5% conversion premium represented the midpoint of the marketed conversion premium range
JWCA was with the management team on the entire day of the offering providing execution advice and ensuring a high-quality execution
Capped call documentation and auction process produced meaningful savings for Dynavax, while maximizing flexibility for the Company