Summary
Workday, Inc. (WDAY) filed an 8-K on January 15, 2014, to report on a material definitive agreement related to a follow-on offering of its Class A common stock. The company entered into an underwriting agreement with Morgan Stanley & Co. LLC, as representative of the underwriters, to sell up to 6,000,000 shares at $89.00 per share. An additional option for 900,000 shares to cover potential over-allotments was also granted. The offering, which became effective on January 13, 2014, is expected to generate net proceeds of approximately $514.9 million, or $592.3 million if the over-allotment option is fully exercised. Workday intends to use these funds for general corporate purposes and working capital, with a possibility of using a portion for future acquisitions, though no specific acquisitions are currently planned.
Key Highlights
- 1Workday announced a follow-on stock offering of up to 6,000,000 shares of Class A common stock.
- 2The offering price is set at $89.00 per share.
- 3An over-allotment option for an additional 900,000 shares was granted to underwriters.
- 4The company expects net proceeds of approximately $514.9 million, potentially rising to $592.3 million if the over-allotment option is exercised.
- 5Proceeds are designated for working capital and general corporate purposes.
- 6Future acquisitions of businesses, technologies, or assets are a potential use for a portion of the proceeds, though no specific deals are in place.
- 7The offering is made under a previously filed and effective Registration Statement on Form S-3.