Workday prices $2.5 billion bond sale to refinance debt and add liquidity

Workday ($WDAY) priced a $2.5 billion offering of senior notes across four maturities. The financing comprises $750 million due in 2029 at 5.7%, $500 million due in 2031 at 6%, $750 million due in 2033 at 6.3%, and $500 million due in 2036 at 6.5%. Closing is expected on October 23, subject to customary conditions.

The software company intends to use part of the net proceeds to retire $1 billion of 3.5% notes maturing in April 2027, with remaining funds available for general corporate purposes. The transaction would extend the funding horizon and increase available liquidity, although the new coupons exceed the rate on the debt earmarked for retirement. Pricing establishes the borrowing terms; the announced proceeds had not yet been confirmed as received at the coverage cutoff.

Sources:

• PR Newswire