JWCA advised Tenable on its debut upsized $800 million convertible, capped call transaction and expected new revolving credit facility
September 2026 | READ PRESS RELEASE
Transaction Background
Tenable Holdings, Inc. (“Tenable” or the “Company”) successfully raised $800 million (inclusive of the greenshoe) in the convertible market at attractive terms (0.25% coupon and a 40.0% conversion premium) with a portion of the proceeds expected to repay existing secured term loans in full
Following the closing of the convertible offering, the Company expects to enter into a new revolving credit facility to provide additional liquidity
Tenable’s objectives included:
Take advantage of favorable market conditions to raise low-cost, unsecured capital to repay secured debt while preserving balance sheet flexibility
Protect against future equity dilution through a capped call and concurrent share repurchase
Execute efficiently while minimizing stock price and market execution risk
Leverage convertible issuance to simultaneously and efficiently pursue a new revolving credit facility to create incremental, flexible and efficient liquidity source
JWCA advised the Company throughout the convertible offering process, including:
Transaction structuring and evaluation of convertible, capped call and share repurchase alternatives
Use of proceeds analysis, dilution mitigation strategies, related accounting, tax and overall economic considerations
Capital structure considerations and liability management of existing indebtedness
Convertible and capped call documentation to ensure maximum value and future efficiency & flexibility for the Company
Execution strategy, market intelligence and timing recommendations
JWCA advised on and managed a competitive RFP process for a new revolving credit facility, coordinated with the convertible offering to align the two processes, drive terms and structure, and enable future flexibility and capital markets optionality
Results
Tenable’s convertible transaction was very well received by investors:
Multiple times oversubscribed, with notable outright demand, reflecting both the Company’s compelling fundamentals and strong convertible market conditions
The executed coupon and conversion premium priced within the marketed ranges
Tenable simultaneously repurchased ~5.3mm shares (~$171mm) from convertible investors
JWCA’s capped call documentation and auction process produced meaningful savings for Tenable, driving significant economics in the Company's favor
