SmileDirectClub Investor Presentation Deck
Convertible Debt Offering.
Deal launched at a size of $350 million and was
later upsized to $650 million due to strong
institutional demand.
In addition, the bookrunners exercised their
full greenshoe option to purchase $97.5
million convertible notes, bringing the full
offering size to $747.5 million.
Notes were priced with a 0% coupon, and a
40% conversion premium.
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In conjunction, SDC entered into a capped
call that will fully offset any potential
equity dilution from conversion of the
notes.
This convertible debt financing strengthens our
balance sheet, with minimal equity dilution, and
fortifies us against a protracted COVID
environment, while also enabling to us to
comfortably execute our growth strategy over
the coming years, while also investing in R&D,
innovation, and other business development
opportunities.
After repaying our outstanding debt facility, we
will have approximately $500 million of cash on
the balance sheet.
smile
DIRECT CLUB
Convertible Debt Key Terms
Base Deal Size
Green Shoe (exercised)
Coupon
Conversion Premium/Price
Net Premium
Capped Call Key Terms
Capped Call Lower Strike
Capped Call Upper Strike
Effective all-in Rate/Terms
$650 million
$97.5 million
0.00%
40.0% / $18.06
40.0% / $18.06
100.0% / $25.80
9.3% of proceeds
~2.0% Cost of Capital up 100%
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