Loan & DebtMay 12, 2026, 07:47 AM
Tyler Technologies Prices Upsized $1.25B Convertible Senior Notes
AI Summary
Tyler Technologies, Inc. announced the pricing of its upsized offering of $1.25 billion aggregate principal amount of 0.50% convertible senior notes due 2031. The offering size was increased from the previously announced $1 billion. The company estimates net proceeds of approximately $1.224 billion, which will be used to fund capped call transactions, repurchase 1,026,900 shares of common stock for $320.7 million, and for general corporate purposes, enhancing financial flexibility and offsetting potential dilution.
Key Highlights
- Priced upsized offering of $1,250,000,000 aggregate principal amount of 0.50% convertible senior notes due 2031.
- Offering size increased from $1,000,000,000 previously announced.
- Initial conversion price of approximately $405.94 per share, a 30.0% premium over May 11, 2026 closing price.
- Estimated net proceeds of approximately $1,224.3 million.
- Intends to use $162.8 million of proceeds for capped call transactions.
- Expects to repurchase 1,026,900 shares for $320.7 million concurrently with the offering.
- Capped call transactions have an initial cap price of approximately $655.77 per share, a 110% premium.