Workiva greenshoe bumps 1.25% five-year convertibles to $702 million

By William Gullotti

Buffalo, N.Y., Aug. 29 – The underwriter for Workiva Inc.’s upsized $625 million offering of five-year convertible notes partially exercised the $100 million greenshoe to up the total issue size to $702 million, according to an 8-K filed with the Securities and Exchange Commission.

The company priced the original $625 million offering after the market close on Aug. 14 at par with a coupon of 1.25% and an initial conversion premium of 30%, as previously reported.

Settlement was Aug. 17.

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%.

As previously reported, 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.

Goldman Sachs & Co. LLC was the bookrunner for the Rule 144A offering.

With the greenshoe only exercised for $77 million, net proceeds are expected to be $690.8 million.

About $397 million of net proceeds will be used to fund the repurchase of the company’s 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.

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