WisdomTree prices $415 million convertible notes offering

WisdomTree Inc. (NYSE: WT) announced the pricing of its $415 million convertible senior notes offering due 2030, an increase from the initially announced $400 million due to investor demand. Initial purchasers exercised their full $60 million option, bringing the total offering to $475 million.

The notes carry a 4.625% annual interest rate and mature August 15, 2030. They convert at an initial rate of 52.2071 shares per $1,000 principal amount, equivalent to a conversion price of $19.1545 per share. This represents a 45% premium to the company's August 11 closing stock price of $13.21.

WisdomTree expects approximately $464 million in net proceeds after deducting fees and expenses. The company plans to allocate $275 million toward its previously announced Ceres Partners acquisition, $37 million to repurchase $24 million of its outstanding 5.75% convertible notes due 2028, and $90 million to buy back approximately 6.8 million shares of common stock from certain note purchasers.

The company will repurchase roughly 93% of the $25.8 million in 2028 notes currently outstanding for approximately $37 million, anticipating a one-time loss of about $13 million on the transaction.

WisdomTree may redeem the notes beginning August 20, 2027, if its stock price reaches at least 130% of the conversion price for specified trading periods. Noteholders have put rights upon certain fundamental changes.

The offering was conducted as a private placement to qualified institutional buyers under Rule 144A. Settlement is expected August 14, 2025, subject to customary closing conditions.

WisdomTree manages approximately $129.1 billion in assets globally and offers exchange-traded products, models and digital asset-related services.

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