JWCA advises Snap on its upsized $1.5 billion convertible issuance and capped call
February 2022 | read press release
Transaction Background
Snap successfully raised an upsized $1.5 billion (inclusive of greenshoe) in the convertible market at highly attractive terms (0.125% coupon and 50.0% conversion premium)
Snap engaged J. Wood Capital Advisors to assist in the structuring, negotiation, documentation and execution of its transaction
JWCA provided extensive analysis for Snap on deal structuring and related items, such as:
Convertible structuring
Derivative overlay structuring
Derivative overlay upper strike to minimize future dilution
Convertible and capped call documentation advice to ensure maximum value and future efficiency/flexibility for the company
Advice on timing and when to go to market
JWCA designed and ran a capped call auction process to achieve competitive terms
JWCA provided advice, support and analysis throughout the negotiation and execution process
Results
Snap’s convertible issuance represented the first “mega” convertible deal of 2022
Despite broader market volatility and concerns around inflation and rising interest rates, Snap’s convertible issuance was very well-received by investors:
The 0.125% coupon and 50.0% conversion premium represented the company-friendly end of both the coupon and conversion premium ranges
The deal was upsized to $1.5 billion (inclusive of greenshoe)