WisdomTree, Inc. has just announced the pricing of an upsized offering of $415 million of convertible senior notes due 2030, with an additional $60 million greenshoe and concurrent repurchases of 6.8 million shares of common stock and substantially all of the 2028 notes. The offering was increased from the initial $400 million due to strong investor demand. The net proceeds from the offering, after deducting the initial purchasers' discount and estimated offering expenses payable by WisdomTree, are expected to be approximately $464 million.
WisdomTree intends to use $275 million of the net proceeds from the offering to pay the closing consideration for its previously announced acquisition of Ceres Partners, LLC. Approximately $37 million of the net proceeds will be used to repurchase $24.0 million in aggregate principal amount of its outstanding 5.75% convertible senior notes due 2028, representing roughly 93% of the $25.8 million aggregate principal amount currently outstanding. Additionally, approximately $90 million of the net proceeds will be used to repurchase approximately 6.8 million shares of WisdomTree’s common stock from certain purchasers of the notes. The remainder of the net proceeds will be used for working capital and other general corporate purposes.
The key terms of the notes include a maturity in 5 years, an interest rate of 4.625%, and a conversion price of $19.1545. The notes will be convertible at an initial conversion rate of 52.2071 shares of WisdomTree’s common stock per $1,000 principal amount of notes.
WisdomTree has also entered into separate privately negotiated transactions to repurchase $24.0 million of its 2028 notes, for which it anticipates recognizing a one-time loss on extinguishment of approximately $13 million.
The notes were offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act and have not been registered under the Securities Act or any state securities laws.
WisdomTree currently has approximately $129.1 billion in assets under management globally, and offers a diverse suite of exchange-traded products, models, and solutions, as well as digital asset-related products. As a result of these announcements, the company's shares have moved 2.84% on the market, and are now trading at a price of $13.585. Check out the company's full 8-K submission here.
