Workday Prices $2.5 Billion Senior Notes Offering at 5.700% to 6.500%

Workday, Inc. (WDAY) said Wednesday it priced a $2.5 billion public offering of senior notes across four tranches, with the deal expected to close on October 23. The offering comprises $750 million of 5.700% notes due 2029, $500 million of 6.000% notes due 2031, $750 million of 6.300% notes due 2033 and $500 million of 6.500% notes due 2036. The enterprise cloud software company intends to use net proceeds to redeem, repay, repurchase or otherwise retire its $1 billion of 3.500% notes due April 1, 2027, with any remainder earmarked for general corporate purposes. Workday shares closed down 0.50% at $202.96 on the Nasdaq and slipped another 0.37% to $202.20 in overnight trading.