And while Exact has created a lot of
investor goodwill and does have a bright
future, there are limitations to how far a
money-losing company can push the
envelope.STRIKE UP THE BANDWIDTHBANDWIDTH, the communications-as-a-service
provider, powered through market volatility
to land an upsized US$350m on Tuesday’s
sale of a six-year convertible bond.
No consideration was given to putting off
THEûlNANCINGûANDûTHEREûWASûLITTLEûCONCESSIONû
necessary aside from a market-assisted sell-
off in the underlying.
“These are exact same terms that we
would have launched at one or two weeks
ago,” one banker involved in the transactiontold IFR. “There is a view that the market
could get worse.
“A lot of companies don’t have long
WINDOWSûTOûFUNDû)FûTHEYREûCONlDENTûINû
THEIRûSTORY ûITSûNOTûWORTHûITûTOûSACRIlCEûTHEû
opportunity for a few basis points.”
Bandwidth, whose communications
software integrates into customer
platforms, landed US$350m of new funding
on which it will pay a coupon of just 0.25%
annually with dilution recognition offset to
a 32.5% premium.
Morgan Stanley and JP Morgan had
marketed a US$300m offering at a coupon
and conversion premium of 0.25%–0.75%
and 30%–35% for one day on Tuesday. They
waited until Tuesday morning, rather than
the night before, to formally launch the
transaction.“I do think you’ll see (pre-open) launches
become more commonplace if market
conditions don’t stabilise,” said the banker.
“It allows you to avoid unnecessary
overnight risk.”
Bandwidth’s shares did fall 7.4%, or 740bp
in bond parlance, to US$68.70 over the
Tuesday marketing, against a 3% broader
market sell-off.
Bandwidth spent a portion of the
proceeds raised on a derivative to offset
economic dilution to share prices above
US$137.40, a 100% premium to
reference.
The company, which went public in late
2017 at US$20.00 a share and sold stock last
March at US$54.25 a share, last week
reported strong quarterly results that has it
guiding towards break-even net earnings by
the fourth quarter.
"ANDWIDTHûISûAûlRST
TIMEû#"ûISSUER û
something in short supply relative to a
large amount of software paper
outstanding.84 International Financing Review February 29 2020EQUITY-LINKED DEALS WEEK ENDING: 28/2/2020Issuer Country Date Amount Greenshoe Tenor Coupon/YTM % Premium (%) Bookrunner(s)
Yandex Russia 25/02/2020 US$1.25bn 5y 0.75 47.5 GS, JP Morgan, MS, UBS, VTB Capital
Bandwidth US 25/02/2020 US$350m US$50m 6y 0.25 33 Morgan Stanley, JP Morgan
Exact Sciences US 24/02/2020 US$1bn US$150m 8y 0.38 28 BofA
NuVasive US 26/02/2020 US$450m US$50m 5y 0.38 35 Morgan Stanley, BofA, RBC CM
RingCentral US 27/02/2020 US$1bn US$150m 5y 0 50 Morgan Stanley, GS, JP Morgan, BofAGLOBAL CONVERTIBLE OFFERINGS
BOOKRUNNERS: 1/1/2020 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)Including exchangeables and domestic offerings.
Source: Refinitiv SDC code: C91 BofA 8 2,923.89 15.7
2 JP Morgan 10 2,267.11 12.2
3 Morgan Stanley 9 1,875.10 10.1
4 Goldman Sachs 8 1,587.98 8.5
5 Citigroup 6 1,167.55 6.3
6 Barclays 4 1,011.71 5.4
7 Wells Fargo 2 848.86 4.6
8 UBS 3 565.78 3.0
9 CICC 3 557.34 3.0
10 HSBC 4 540.52 2.9
Total 42 18,604.83GLOBAL CONVERTIBLE OFFERINGS – US
BOOKRUNNERS: 1/1/2020 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)(^)
Source: Refinitiv SDC code: C9a
1 BofA 7 2,551.86 30.5
2 JP Morgan 4 1,173.86 14.0
3 Goldman Sachs 5 972.20 11.6
4 Morgan Stanley 5 859.70 10.3
5 Wells Fargo 2 848.86 10.2
6 Barclays 2 533.33 6.4
7 Jefferies 2 248.75 3.0
8 Truist Financial Corp 2 151.36 1.8
9 Citigroup 2 151.36 1.8
10 RBC 1 150.00 1.8
Total 14 8,362.98
GLOBAL CONVERTIBLE OFFERINGS – EMEA
BOOKRUNNERS: 1/1/2020 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
Including exchangeables.
Source: Refinitiv SDC code: C09d
1 JP Morgan 3 667.46 20.0
2 Morgan Stanley 2 528.38 15.8
3 HSBC 1 278.38 8.3
4 UniCredit 1 278.38 8.3
5 Barclays 1 278.38 8.3
6 Citigroup 1 278.38 8.3
7 BNP Paribas 1 278.38 8.3
8 Goldman Sachs 1 250.00 7.5
9 UBS 1 250.00 7.5
10 VTB Capital 1 250.00 7.5
Total 3 3,337.71
ALL INTERNATIONAL ASIAN CONVERTIBLES
BOOKRUNNERS: 1/1/2020 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
Including exchangeables.
Source: Refinitiv SDC code: M10
1 Citigroup 3 737.81 17.9
2 Morgan Stanley 2 487.03 11.8
3 JP Morgan 3 425.78 10.3
4 BofA 1 372.03 9.0
5 Goldman Sachs 2 365.78 8.9
6 Credit Suisse 4 359.48 8.7
7 UBS 2 315.78 7.6
8 HSBC 2 225.78 5.5
9 Barclays 1 200.00 4.8
10 BNP Paribas 1 200.00 4.8
Total 9 4,130.06
ALL INTERNATIONAL ASIAN CONVERTIBLES
(EXCLUDING JAPAN)
BOOKRUNNERS: 1/1/2020 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
Including exchangeables.
Source: Refinitiv SDC code: M11
1 Citigroup 3 737.81 19.0
2 Morgan Stanley 2 487.03 12.5
3 JP Morgan 3 425.78 11.0
4 BofA 1 372.03 9.6
5 Goldman Sachs 2 365.78 9.4
6 UBS 2 315.78 8.1
7 Credit Suisse 2 265.00 6.8
8 HSBC 2 225.78 5.8
9 Barclays 1 200.00 5.1
10 BNP Paribas 1 200.00 5.1
Total 6 3,884.98
CONVERTIBLE EQUITY LEGAL ADVISER TO
MANAGER, EMEA
1/1/2020 TO 27/2/2020
No of Total Share
Legal adviser issues US$(m) (%)
1 Freshfields Bruckhaus Deringer 1 1,948.6
58.4
2 Linklaters 1 139.1 4.2
Total 3 3,337.7
Including exchangeables and domestic.
Source: Refinitiv SDC code: AX8
10 IFR Equities and SE 2322 p 73 - 86 .indd 84 28 / 02 / 2020 19 : 13 : 57