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NEW YORK - WisdomTree, Inc. (NYSE:WT), a financial firm with a market capitalization of $1.89 billion and an "GREAT" financial health score according to InvestingPro, announced Monday its intention to offer $400 million in convertible senior notes due 2030 to qualified institutional buyers, with an option for purchasers to acquire an additional $60 million in notes.
The global financial firm plans to use $275 million of the proceeds to fund its previously announced acquisition of Ceres Partners, LLC. Additionally, WisdomTree intends to allocate funds to repurchase up to $25.8 million of its outstanding 5.75% convertible senior notes due 2028 and approximately $80 million to repurchase shares of its common stock from certain note purchasers. The company’s strong financial position is reflected in its impressive YTD return of 25.25% and revenue growth of 15.43% over the last twelve months.
The notes will be convertible at the option of holders upon satisfaction of certain conditions prior to May 15, 2030, and at any time thereafter until two trading days before maturity. Upon conversion, WisdomTree will pay cash up to the aggregate principal amount and may pay or deliver cash, shares, or a combination for any remainder of the conversion obligation.
WisdomTree will have the option to redeem the notes, in whole or in part, for cash on or after August 20, 2027, under certain circumstances. The interest rate, conversion rate, and other terms will be determined upon pricing of the offering.
The company expects to repurchase shares of its common stock at a price equal to the last reported price per share as of the pricing date. These transactions could impact the market price of both WisdomTree’s common stock and the notes.
The notes and any common stock issuable upon conversion have not been registered under the Securities Act and may only be offered to qualified institutional buyers pursuant to Rule 144A.
WisdomTree currently manages approximately $129.1 billion in assets globally, according to the company’s press release statement. InvestingPro analysis reveals multiple positive indicators for the company, including expected net income growth and strong recent performance, with 8 additional exclusive insights available to subscribers. For detailed valuation metrics and comprehensive analysis, investors can access the full Pro Research Report, available for over 1,400 US stocks.
In other recent news, WisdomTree Investments Inc. reported its Q2 2025 earnings, meeting expectations for earnings per share (EPS) while slightly surpassing revenue forecasts. The company announced an EPS of $0.18, which aligned with market predictions. Revenue for the quarter reached $112.6 million, exceeding forecasts by $1.25 million. Despite this revenue beat, the company’s stock experienced a decline, indicating investor concerns. These developments are part of recent news surrounding WisdomTree.
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