Loan & DebtMay 14, 2026, 05:17 PM
Tyler Technologies Issues $1.44B Convertible Notes; Repurchases $320.7M Stock
AI Summary
Tyler Technologies, Inc. announced the closing of an upsized offering of $1.4375 billion in 0.50% Convertible Senior Notes due 2031, which included the full exercise of the initial purchasers' option. The company utilized approximately $320.7 million of the net proceeds to repurchase 1,026,900 shares of its common stock. Additionally, capped call transactions were executed to raise the effective conversion price to approximately $655.77 per share, aiming to mitigate potential stock dilution. This capital raise provides financial flexibility to support further share repurchases and long-term growth initiatives.
Key Highlights
- Issued $1,437,500,000 aggregate principal amount of 0.50% Convertible Senior Notes due 2031.
- Offering included full exercise of initial purchasers' option for an additional $187,500,000.
- Used $320.7 million of net proceeds to repurchase 1,026,900 shares of common stock.
- Capped call transactions increase effective conversion price to $655.77 per share (110% premium).
- Initial conversion price is $405.94 per share (30% premium over May 11, 2026 price).
- Net proceeds from the offering were approximately $1,408.1 million.
- Year-to-date, the company repurchased 2.1 million shares for $667 million.