Advisory of a Call Spread or Capped Call Unwind
Upon the unwind of a call spread or capped call, a company must remember that its banking advisor will be conflicted. Your advisor will either be on the other side of your transaction, or will have an interest in ensuring that windfall profits upon unwinds keep flowing to the banks. Having a dedicated and experienced advisor who sits on YOUR side of the table is incredibly important to ensure that the unwind will result in a transparent and fair outcome, and to ensure that the merger advice of your banking advisor is not compromised.
The senior members of J. Wood Capital Advisors are the former call spread execution team at J.P. Morgan, and ranked #1 among derivative counterparties during that time. No other advisor has the direct and relevant expertise associated with call spread or capped call unwinds, and no other advisor has the direct experience with all aspects (pricing, trading, tax, accounting, legal, relationship) of this multi-faceted product. Due to the complexity of this instrument, it is simply not possible to get a beneficial outcome by using other advisors who only have a very sporadic and superficial knowledge of the product. We are aware of many instances in which a less experienced advisor left tens of millions of dollars on the table because the advisor did not have our expertise.
We look forward to sharing our collective experience with you to ensure a successful outcome in your call spread or capped call unwind.
