01—Abstract
Summary
Summary of the 8-K filed October 23, 2026. Cited figures are marked; the original filing is the authoritative source.
Workday, Inc. has announced the successful completion of a public offering of $2.5 billiona in aggregate principal amount of senior notes.
This offering includes tranches maturing in 2029, 2031, 2033, and 2036, with fixed interest rates ranging from 5.700% to 6.500%. The net proceeds, estimated at approximately $2.47 billionb after expenses, are primarily earmarked for redeeming $1.0 billion of the company's 3.500% notes due in April 2027, with any remaining funds allocated for general corporate purposes. This debt issuance represents a strategic move by Workday to manage its capital structure and refinance existing debt at potentially more favorable terms or longer maturities, given the current interest rate environment.
The new notes are senior unsecured obligations, ranking equally with other unsecured and unsubordinated debt. The company has also included provisions for a change of control offer to purchase, providing an added layer of security for noteholders.
02—Key points
Key Highlights
- Workday successfully issued $2.5 billion in senior notes across four maturity tranches (2029, 2031, 2033, 2036).
- Interest rates for the new notes range from 5.700% to 6.500% per annum, payable semi-annually.
- Estimated net proceeds of $2.47 billion will be used primarily to redeem $1.0 billion of 3.500% notes due April 1, 2027.
- Remaining proceeds will be used for general corporate purposes.
- The notes are senior unsecured obligations, ranking pari passu with existing and future unsecured and unsubordinated indebtedness.
- A change of control triggering event provision requires Workday to make an offer to purchase notes at 101% of principal plus accrued interest.
03—Questions
Frequently Asked Questions
What is the primary purpose of this $2.5 billion debt issuance?
The primary purpose is to redeem, repay, repurchase, or otherwise retire $1.0 billion of Workday's 3.500% notes due April 1, 2027. Any remaining proceeds will be used for general corporate purposes.
What are the interest rates and maturities of the new senior notes?
The notes consist of $750.0 million of 5.700% senior notes due 2029, $500.0 million of 6.000% senior notes due 2031, $750.0 million of 6.300% senior notes due 2033, and $500.0 million of 6.500% senior notes due 2036.
How does this new debt rank relative to Workday's existing debt?
The new notes are senior unsecured obligations of Workday and rank equally with all existing and future unsecured and unsubordinated indebtedness of Workday.
What happens if Workday undergoes a change of control?
In the event of a Change of Control Triggering Event (as defined in the notes), Workday will be required to make an offer to purchase the notes of the affected series at a price equal to 101% of the aggregate principal amount, plus accrued and unpaid interest.
04—Continue