JWCA advises Mesa Laboratories on the repurchase of $75mm of convertible notes for cash
April 2024 | read press release
Transaction Background
In April 2024, JWCA advised Mesa Laboratories (“MLAB”) on the cash repurchase of $75mm of its outstanding 2025 convertible. Concurrently, Mesa Labs amended and extended their existing credit facility, to include a new term loan and an upsized revolving credit facility
Mesa Labs’ objectives included:
De-lever: retire a portion of the 2025 convertible
Capture an attractive yield-to-maturity by purchasing the notes at a meaningful discount to par
Run a reverse auction process to capture the lowest possible discount
Minimize transaction and friction costs: execute as efficiently as possible with a focus on minimizing execution costs
In its role as Repurchase Agent for the transaction, JWCA provided the following support for the Company:
Provided analysis and advice around tactics related to investor targeting and engagement
Led the investor outreach, negotiation, and execution of repurchases
Assisted the Company with the analysis of convertible economics and pricing dynamics
Results
Mesa Labs executed a successful liability management transaction for its 1.375% convertible notes due 2025:
MLAB repurchased $75mm face value of their convertible notes (~43.5% of outstanding) for cash at a meaningful discount to par