JWCA aCTS AS SOLE PLACEMENT AGENT on LUMINEX’S $260 million convertible AND CALL SPREAD
MAY 2020 | read press release
Transaction Background
After a strong earnings release and rise in stock price (+68% YTD), Luminex was interested in raising capital to strengthen the balance sheet
Luminex’s objectives included:
Low cost financing
Minimizing market and stock price risk
JWCA provided extensive analysis for Luminex on deal structuring and related items:
Convertible and call spread documentation to ensure maximum value and future efficiency/flexibility for the company
Accounting and tax considerations for convertible and bond hedge / warrants
Investor targeting and shareholder messaging
JWCA helped the Company analyze and design an execution strategy to minimize market and execution risk
JWCA designed and ran a call spread auction process to achieve competitive pricing for the Company
Finally, JWCA acted as sole placement agent, and led the marketing, pricing negotiations, and allocation of the security
Results
Luminex’s convertible issuance was well-received by investors, despite ~$3bn in new convertible issuance during the day:
3.00% coupon priced towards the low end of the marketed coupon range (2.875% - 3.375%)
25.0% conversion premium priced at the midpoint of the premium range
Upsized from $200mm at launch to $260mm at pricing
Confidential marketing followed by an overnight execution completely eliminated stock price and market risk to the Company
Call Spread documentation and auction process produced meaningful savings for Luminex, while maximizing flexibility for the Company