By Abigail W. Adams
Portland, Me., Aug. 15 – Workiva Inc. priced an upsized $625 million offering of five-year convertible notes after the market close on Monday at par with a coupon of 1.25% and an initial conversion premium of 30%, according to a company news release.
Pricing came at the cheap end of tightened talk for a coupon of 1% to 1.25% and in line with a fixed conversion premium of 30%.
Initial price talk was for a coupon of 1% to 1.5% and an initial conversion premium of 27.5% to 32.5%.
Goldman Sachs & Co. LLC was sole bookrunner for the Rule 144A offering, which carries an upsized greenshoe of $100 million.
The initial size of the offering was $525 million with a greenshoe of $75 million.
The notes are non-callable until Aug. 21, 2026 and then subject to a 130% hurdle.
They are putable upon a fundamental change.
Workiva entered into privately negotiated transactions to repurchase $274 million in principal of its 1.125% notes due 2026 for $397 million in cash.
Net proceeds are expected to be $615 million or will be $714 million if the greenshoe is exercised in full.
Approximately $397 million of net proceeds will be used to fund the repurchase of the 1.125% notes with the remaining amount to be used for general corporate purposes, which may include acquisitions or investments in complementary businesses, assets, products or technologies.
Workiva is a New York-based financial reporting software company.
| Issuer: | Workiva Inc.
|
| Amount: | $625 million
|
| Greenshoe: | $100 million
|
| Issue: | Convertible senior notes
|
| Maturity: | Aug. 15, 2028
|
| Bookrunner: | Goldman Sachs & Co. LLC
|
| Coupon: | 1.25%
|
| Price: | Par
|
| Yield: | 1.25%
|
| Conversion premium: | 30%
|
| Conversion price: | $133.89
|
| Conversion rate: | 7.4690
|
| Call options: | Non-callable until Aug. 21, 2026 and then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | Aug. 14
|
| Settlement date: | Aug. 17
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 1% to 1.25%, up 30%, revised from coupon of 1% to 1.5% and initial conversion premium of 27.5% to 32.5%
|
| Stock symbol: | NYSE: WK
|
| Stock price: | $102.99 at market close Aug. 14
|
| Market capitalization: | $5.53 billion
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
