JWCA advises Guidewire on its new $300 million revolving credit facility in conjunction with its upsized $690 million convertible and capped call offering

December 2024 | read press release

Transaction Background and Description

Guidewire Software, Inc. (“Guidewire” or the “Company”) successfully entered into a new $300 million revolving credit facility in conjunction with its upsized $690 million convertible and capped call offering to retire a portion of its outstanding 2025 convertible notes

Guidewire’s objectives included:

  • Leverage convertible issuance and relationship-building event to simultaneously, efficiently and opportunistically put in place a revolving credit facility with minimal impact to Company

  • Create $300mm incremental liquidity with flexible terms and attractive pricing allowing for additional strategic and operational flexibility

  • Solidify its banking relationships in a new corporate facility and diversify its liquidity sources; send positive signal to equity stakeholders

JWCA provided extensive analysis on deal structuring and related items, including:

  • Designed and executed a 2-step process, allowing the Company to soft-circle a new revolving credit facility in a very short timeframe to accommodate the convertible issuance timeline

  • Advised on negotiation tactics and analysis, model and internal implications

  • Designed the structure and provided best-in-class terms on pricing, covenants, definitions and overall flexibility

  • Helped the Company push the banks in the areas the Company wanted most flexibility to meet its strategic and operational goals

  • Designed the syndication process in coordination with the convertible execution

  • Fully syndicated the new revolver by the time the convertible launched

  • Consulted on the marketing materials, diligence process and overall execution

JWCA negotiated with the lenders and facilitated a smooth process of drafting the credit agreement and ancillary documents to the closing

JWCA provided advice, support and analysis throughout the execution process