JWCA advises Sarepta Therapeutics on the exchange of $700 million of its existing convertible into a new $602 million convertible plus cash and shares

Transaction Background

Sarepta Therapeutics, Inc. (“SRPT” or the “Company”) wanted to opportunistically refinance its outstanding 2027 convertible

Sarepta’s objectives for the refinancing transaction included:

Extend maturity on a majority of its outstanding $1.15bn convertible notes due 2027
De-lever by providing a mix of cash and shares to investors
Set a high conversion price of $60 to limit equity dilution
Execute in an overnight manner to mitigate stock price risk associated with a day of public marketing

JWCA acted as sole exchange agent for the transaction, providing the following support:

Analyzed range of refinancing alternatives and structured transaction to best meet Company’s objectives
Led targeting, outreach, and negotiation of transaction with investors

Results

Sarepta issued $602 million in a new convertible with a conversion price of $60 (premium of ~191.5% to the closing stock price before announcement)

The Company was able to retire $700mm (~61%) of its outstanding 2027 convertible notes at a discount to par, reducing gross leverage by ~$100mm

Delivered ~$110mm in equity and used slightly more than $100mm of existing cash

Avoided market risk as the exchange was executed overnight after a confidential marketing process with existing convertible investors

J. Wood Capital supported the transaction by investing $20mm in a private placement with the Company