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.”
— Julie Iskow, CEO

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