Workday Prices $2.5 Billion in Notes, Plans to Retire 2027 Debt

Workday priced $2.5 billion in senior notes Oct. 21 to help retire debt maturing in 2027, dividing the borrowing among four tranches due between 2029 and 2036.

The offering includes $750 million in notes due in 2029 with a 5.700% coupon and $750 million due in 2033 with a 6.300% coupon. Two $500 million tranches carry coupons of 6.000% for notes due in 2031 and 6.500% for notes due in 2036.

Workday plans to direct some of the net proceeds to its $1 billion debt issue bearing 3.500% interest and due April 1, 2027; it may retire those notes before then or at maturity, with the remaining net proceeds intended for general corporate purposes. Workday expects the offering to close Oct. 23, if customary closing conditions are met.