Guidewire (GWRE) To Commence Public & Senior Notes Offerings
Zacks Investment Research | Mar 07, 2018 10:07PM ET
Guidewire Software, Inc. (NYSE:GWRE) recently announced its intention to raise funds through concurrent underwritten public offerings and convertible unsecured senior notes. In this regard, the company intends to offer concurrent public offering of $200 million of its common stock and $300 million in aggregate principal amount of its senior notes. The notes will mature in 2025.
The company will also provide a 30-day option to underwriters of equity offerings and note offerings to purchase up to an additional $30 million of common stock and $45 million of senior notes, respectively. This additional amount is intended to cover over-allotments, if any. Consequently, Guidewire will be raising $575 million in total with the equity and senior note offerings.
The company will disclose interest rate, conversion rate and other terms after determining the pricing of the offering. However, the company has stated that the interest payment will be semi-annual. The offering is subject to customary closing conditions.
J.P. Morgan Securities LLC, Citigroup (NYSE:C) Global Markets Inc. and Goldman Sachs & Co (NYSE:GS). LLC are acting as joint book-running managers for both the offerings, along with a few other lenders.
Guidewire intends to use the net proceeds from the aforementioned offerings to pay the cost of the capped call transactions. It also intends to use the remaining of the net proceeds for general corporate purposes, strategic acquisitions and working capital.
Stock Performance & Cash Position
Shares of Guidewire have been steadily treading higher over the past year. Guidewire stock has gained 57.7% year over year, substantially outperforming the 39.5% rally of the Original post
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