Bullish indicating open at $55-$60, IPO prices at $37
NEW YORK - WisdomTree, Inc. (NYSE:WT), a $1.89 billion market cap financial innovator with a GREAT financial health score according to InvestingPro, has priced an upsized offering of $475 million in convertible senior notes due 2030, announced Tuesday. The offering, initially set at $400 million, was increased due to strong investor demand, reflecting market confidence in the company that has delivered a 36% return over the past six months.
The notes will bear interest at 4.625% per year, payable semi-annually, and will mature on August 15, 2030, unless earlier converted, repurchased or redeemed. The initial conversion price is approximately $19.15 per share, representing a 45% premium to the August 11 closing price of $13.21. The company’s strong positioning is supported by impressive revenue growth of 15.4% in the last twelve months.
WisdomTree plans to use $275 million of the proceeds to fund its previously announced acquisition of Ceres Partners, LLC. Additionally, approximately $37 million will go toward repurchasing about $24 million of its outstanding 5.75% convertible senior notes due 2028, representing roughly 93% of the $25.8 million currently outstanding.
The company will also allocate approximately $90 million to repurchase about 6.8 million shares of its common stock from certain note purchasers at $13.21 per share. The remaining proceeds will be used for working capital and general corporate purposes.
The offering, which was made only to qualified institutional buyers under Rule 144A of the Securities Act, is expected to settle on August 14, resulting in approximately $464 million in net proceeds after expenses.
Prior to May 15, 2030, the notes will be convertible upon satisfaction of certain conditions. Upon conversion, WisdomTree will pay cash up to the aggregate principal amount and may settle any excess conversion obligation in cash, shares, or a combination thereof.
WisdomTree currently manages approximately $129.1 billion in assets globally, according to the press release statement. With analysts setting a high target of $16 per share and having revised earnings estimates upward, the company shows promising growth potential. For deeper insights into WisdomTree’s valuation and growth prospects, including 8 additional ProTips and comprehensive financial analysis, visit InvestingPro, where you can access the detailed Pro Research Report covering what really matters about this financial innovator.
In other recent news, WisdomTree reported its Q2 2025 earnings, meeting expectations for earnings per share (EPS) at $0.18, while revenue slightly exceeded forecasts by reaching $112.6 million, surpassing projections by $1.25 million. Additionally, WisdomTree announced plans to offer $400 million in convertible senior notes due 2030 to qualified institutional buyers, with an option for an additional $60 million in notes. The company intends to use $275 million of the proceeds to fund its acquisition of Ceres Partners, LLC. Furthermore, WisdomTree plans to allocate approximately $80 million to repurchase shares of its common stock from certain note purchasers. The company also aims to repurchase up to $25.8 million of its outstanding 5.75% convertible senior notes due 2028. Despite the revenue beat, WisdomTree’s stock experienced a decline in pre-market trading. These developments reflect the company’s strategic financial maneuvers and recent earnings performance.
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