WWE Sets Up Huge Privately-Negotiated Agreement With ‘Certain Investors’

WWE is always making moves in the business world, and they just pulled a pretty hefty play today. The company announced that they have entered into a privately-negotiated agreement with investors with a lot of stock attached.

In a press release sent out by the company, WWE announced that they have agreed to exchange “an aggregate of 6.9 million shares of its Class A common stock and in cash for the principal amount of its outstanding 3.375% Convertible Senior Notes.”

There will still be an outstanding principal of these notes after the deal is over, but this is still a big play for Vince McMahon’s company.

WWE (NYSE: WWE) (the “Company”) today announced that it entered into privately-negotiated agreements with certain investors to exchange an aggregate of 6.9 million shares of its Class A common stock and in cash for the principal amount of its outstanding 3.375% Convertible Senior Notes due 2023 (the “Notes”) held by such investors (the “Exchanges”) pursuant to exemptions from registration under the Securities Act of 1933, as amended, and the rules and regulations thereunder. The Exchanges are expected to close on or about May 18, 2023.

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Following the Exchanges, an aggregate of principal amount of the Notes will remain outstanding.

In connection with the Exchanges, WWE also entered into partial unwind agreements with JPMorgan Chase Bank, National Association, Branch, Morgan Stanley & Co. International plc and Citibank, N.A., (collectively, the “Counterparties”) to terminate corresponding portions of the convertible note hedge and warrant transactions WWE previously entered into with the Counterparties in connection with the issuance of the Notes (together with the Exchanges, the “Transactions”). The respective unwind agreements provide for a payment by each Counterparty to WWE in respect of the convertible note hedge transactions, or by WWE to each Counterparty in respect of the warrant transactions, as applicable, in cash in an amount based on the trading price for WWE’s common stock. In connection with such terminations, WWE anticipates that it will receive net proceeds from the Counterparties equal to approximately .

J. Wood Capital Advisors LLC acted as placement agent and financial advisor in connection with the Transactions.

It was also noted that, “this press release does not constitute an offer to sell or the solicitation of an offer to buy any security, nor shall there be any offer, solicitation or sale of any security, in any jurisdiction in which such offering, solicitation or sale would be unlawful.”

We will have to see what kind of plays WWE makes in the future, because they are going through a lot of corporate shifting thanks to their merger with UFC under Endeavor’s umbrella. Keep checking back with Ringside News for more.

What’s your take on this business move from WWE? Do you think they have everything together for the merger? Sound off in the comments!