JWCA advises JBT Corporation on its debut convertible bond and call spread transaction

May 2021 | read press release

Transaction Background

JBT successfully raised $402.5mm in the convertible market at attractive terms (0.25% coupon and 32.5% conversion premium)

Company objectives:

• Take advantage of strong convertible market conditions

• Raise capital for general corporate purposes, including potential acquisitions

JWCA provided extensive analysis for JBT on deal structuring and related items, such as:

• Convertible and derivate overlay structuring

• Convertible and call spread 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 call spread auction process to achieve competitive terms

JWCA provided advice, support and analysis throughout the execution process

Results

JBT’s convertible issuance was very well-received by investors

• The transaction was multiple times oversubscribed, reflecting strong investor interest in and demand for the Company’s offering

• JBT’s stock price traded down 5.1% on a day where comparable convertible issuers stock prices usually trade down 7 – 9% on the pricing date

• 32.5% conversion premium and 0.25% coupon priced at the midpoint of the marketed premium and coupon range

Call spread documentation and auction process produced meaningful savings for JBT, while maximizing flexibility for the Company