JWCA advises Workiva on its upsized $702 million convertible issuance
august 2023 | read press release
Transaction Background
Workiva successfully raised an upsized $702mm convertible (inclusive of greenshoe) at very attractive terms (1.25% coupon and 30% conversion premium), while refinancing $274mm (~79%) of its convertible due 2026
Workiva took advantage of the recent market momentum in its stock to successfully execute the convertible issuance along with the refinancing of its outstanding convertible
Workiva engaged J. Wood Capital Advisors to assist in the structuring, negotiation, documentation and execution of its transaction
JWCA provided extensive analysis for Workiva on deal structuring and related items, including:
Convertible structuring: maturity, redemption, derivative overlay
Refinancing objectives and outcome analysis
Accounting and tax analysis/implications
Convertible documentation to ensure maximum value and future efficiency/flexibility for the company
Syndicate structure and precedent data
“You (J. Wood Capital) were phenomenal through the entire process – beginning to end (strategy through execution). You guided us, provided expertise, gave us confidence, and led us to a favorable outcome. Please count Workiva among your list of happy customer-companies.”
Results
Workiva’s convertible issuance was extremely well-received by investors
The transaction was multiple times oversubscribed, reflecting strong investor interest and demand in the Company’s second convertible bond offering
Upsized the transaction by $100 million
The 1.25% coupon and 30.0% conversion premium represented the midpoint of both the coupon and conversion premium ranges
Retired ~$274mm (~79%) of existing 2026 bonds with minimal cost
Effectively increased conversion price to $133.89 from $80.16 with very similar coupon in rising interest rate environment, 1.25% vs 1.125%
Stock price was up ~0.5% on the day