JWCA advises KARYOPHARM THERAPEUTCS on its $173 million convertible debt offering

OCTOBER 2018 | read press release

Transaction Background

Karyopharm Therapeutics needed to raise capital to support the commercial launch of Selinexor, to fund continuation of clinical programs, and for general corporate purposes. KPTI hired JWCA as its Financial Advisor to evaluate a range of financing alternatives and determine the most appropriate market for the company to access

JWCA provided extensive advice throughout the entire process:

• Evaluated a range of financing alternatives: equity, public convertible, private convertible, structured debt, and royalty

• Assisted in cost of capital analysis, covenant, and structural comparisons of different financing options

• Provided an overview of the investor landscape for various alternatives

• Pricing and structuring of the convert, including provisional call feature

• Syndicate economics and fees

• Precedent Biotech equity follow-ons and convertible file-to-offer discount

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

Results

Karyopharm’s convertible issuance was well-received by convertible debt investors on a big “risk-off” day with broader market indices all down 3%+

Convert priced better than precedent sub $1.5B Biotech deals (2015 – 2018 YTD):

• Coupon of 3.00% vs 3.63%

• Conversion premium of 27.5% vs 26.9%