JWCA advises PureCycle Technologies on its debut and upsized $250 million green convertible notes

August 2023 | read press release

Transaction Background

PureCycle Technologies, Inc. (“PCT”) successfully raised $250mm in the convertible market at attractive terms (7.25% coupon and 50.0% conversion premium)

PureCycle’s objectives included:

• Raise capital to fund recently completed and future green projects

• Eliminate stock price risk

PureCycle engaged J. Wood Capital Advisors to assist in the structuring, negotiation, documentation and execution of the transaction

JWCA provided extensive analysis on deal structuring and related items, including:

• Convertible structuring

• Accounting and tax analysis / implications

• Convertible documentation to ensure maximum value and future efficiency/flexibility for the company

• Shareholder messaging

JWCA provided advice, support and analysis throughout the execution process

The transaction was conducted privately using a three-day wall cross process, before flipping into an overnight marketed transaction

Results

PureCycle’s debut convertible offering was very well received by investors:

• The transaction was multiple times oversubscribed and upsized by $15 million before greenshoe

• 7.25% coupon priced at the low end of the 7.25 – 7.75% marketed range

• The confidential marketing allowed the Company to build a strong order book of long-only investors and send a strong signal going into the overnight marketing process

PureCycle was able to obtain unsecured, covenant-lite debt at attractive terms