JWCA advises Envista Holdings on its $517.5 million convertible and capped call

May 2020 | read press release

Transaction Background

Given the uncertainty surrounding the duration of COVID-19, Envista Holdings wanted to ensure ample liquidity for when economies around the world reopened and the company could continue to execute its business plan.​

Envista’s objectives:​

• Raise capital at a premium to current stock price to minimize dilution​

• Take advantage of a strong, resilient convert market​

• Maximize proceeds and minimize dilution with a targeted capped call​

JWCA advised Envista on deal structuring and related items, includin

• Investor messaging​

• Accounting considerations​

• Issuer redemption and make-whole mechanics​

• Cost of capital​

• Documentation​

• Syndicate economics

JWCA also designed and ran a capped call auction process to achieve competitive terms and diversify counterparty risk​

JWCA provided advice, support, and analysis throughout the execution process​

Results

Envista convertible issuance was very well-received by investors:​

• Book was ~3x covered by midday​

• Company was able to upsize the base deal by $50mm while executing coupon and premium terms within the marketed range​

• Stock price closed nearly flat, down just (0.25%)​ Achieved ~45% allocation to long-only fundamental investors​

Capped call documentation and auction process produced meaningful savings for Envista while protecting the company in early unwind scenarios​