WisdomTree plans $400 million convertible notes offering

WisdomTree Inc. (NYSE: WT) announced plans to offer $400 million in convertible senior notes due 2030 through a private placement to qualified institutional buyers. The company also expects to grant initial purchasers an option to buy an additional $60 million of the notes.

The company intends to use $275 million of net proceeds to finance its previously announced acquisition of Ceres Partners LLC. WisdomTree plans to allocate approximately $80 million to repurchase shares of its common stock from certain note purchasers and use a portion of proceeds to repurchase up to $25.8 million of its outstanding 5.75% convertible senior notes due 2028.

The notes will be convertible under certain conditions before May 15, 2030, and at any time thereafter until maturity. Upon conversion, WisdomTree will pay cash up to the principal amount and may deliver cash, common stock, or a combination at the company's discretion for any excess conversion value. The notes will be redeemable at WisdomTree's option starting August 20, 2027.

WisdomTree plans concurrent transactions to repurchase its 2028 notes through privately negotiated deals with holders. The company noted that certain market activities by note holders and purchasers could affect its stock price, though it cannot predict the magnitude or overall impact of such activities.

The notes will only be offered to qualified institutional buyers under Rule 144A and have not been registered under the Securities Act. If the Ceres Partners acquisition is not completed, WisdomTree would use those proceeds for general corporate purposes, including potential debt repayment.

The financial technology company currently manages approximately $129.1 billion in assets globally and offers exchange-traded products and digital asset-related services.

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