JWCA advises LEXICON PHARMACEUTICALS on AN EXCHANGE OF ITS convertible notes INTO STOCK AND CASH

SEPTEMBER 2020 | read press release

Transaction Background

In accordance with Lexicon’s plan to de-leverage the balance sheet and better align with its strategic focus on LX9211, Lexicon opportunistically retired a portion of its convertible notes using a mix of stock and cash

Lexicon’s objectives included:

• Retire the convertible to lower debt balance and interest expense

• Capture economic value by retiring the notes at a significant discount to par

• Use stock as part of the consideration to preserve cash

• Minimize transaction and friction costs; execute as efficiently as possible

JWCA acted as Exchange Agent for the transaction and provided analysis and advice around:

• Evaluate tactics around investor targeting and execution method

• Balancing repurchase considerations to minimize purchase price and friction costs

• Investor outreach and execution of exchanges

Results

The Company executed a successful liability management transaction for its 5.25% convertible notes due 2021:

• Exchanged $75.8mm of their convertible notes for a mix of stock and cash

• Saved an estimated $6 million of cash interest expense over the remaining life

• Bonds retired at a significant discount to par, creating economic savings for the Company