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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Notes mature February 2026
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.
smile
DIRECT CLUB
Convertible Debt Key Terms
Base Deal Size
Green Shoe (exercised)
Coupon
Conversion Premium/Price
Settlement Date
Maturity
Capped Call Key Terms
Capped Call Lower Strike
Capped Call Upper Strike
Net Premium
Effective all-in Rate/Terms
$650 million
$97.5 million
0.00%
40.0% / $18.06
February 9, 2021
February 1, 2026
40.0% / $18.06
100.0% / $25.80
9.3% of proceeds
~2.0% Cost of Capital up 100%
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