Workday senior notes totaling $2.5 billion were issued on October 23, 2026, completing a four-part debt offering. The company estimates net proceeds of approximately $2.47 billion and intends to use part of the money to retire $1 billion of notes due April 1, 2027, with the balance available for general corporate purposes.
Key Takeaways
- The offering is complete, but retirement of the existing 2027 notes remains a planned use of proceeds.
- Four fixed-rate tranches spread the new debt maturities from 2029 through 2036.
- The notes are senior unsecured obligations, with interest payments beginning April 23, 2027.
Table of Contents
- Workday senior notes fund planned debt retirement
- Four maturities and a shared payment schedule
- Unsecured ranking and conditional repurchase rights
- Conclusion
Workday senior notes fund planned debt retirement
The closing followed an underwriting agreement dated October 21, 2026. Estimated net proceeds reflect deductions for the underwriting discount and offering expenses.
Workday’s announced use of proceeds calls for redeeming, repaying, repurchasing or otherwise retiring its $1 billion of 3.500% notes due April 1, 2027, at or before maturity. Any remaining proceeds are intended for general corporate purposes.
The transaction therefore raises more than is needed to retire the specified debt; it is not solely a dollar-for-dollar refinancing. The new notes also carry higher coupons than the existing 3.500% issue, while extending the maturity dates of the newly borrowed funds.
| Item | Details |
|---|---|
| 2029 maturity | $750 million principal; 5.700% annual coupon. |
| 2031 maturity | $500 million principal; 6.000% annual coupon. |
| 2033 maturity | $750 million principal; 6.300% annual coupon. |
| 2036 maturity | $500 million principal; 6.500% annual coupon. |
Four maturities and a shared payment schedule
The offering consists entirely of fixed-rate debt, with the principal amounts, coupons and maturity years set out below. Interest on every series is payable semiannually in arrears on April 23 and October 23, beginning April 23, 2027.
Morgan Stanley, BofA Securities, Barclays and Wells Fargo Securities served as representatives of the underwriters. The issuance used Workday’s effective shelf registration statement filed on May 29, 2026.
Unsecured ranking and conditional repurchase rights
The notes rank equally with Workday’s other existing and future unsecured, unsubordinated debt. Senior status does not mean that specific assets are pledged as collateral.
Workday may redeem the notes, in whole or in part, at specified redemption prices. A qualifying Change of Control Triggering Event would require the company, subject to certain exceptions, to offer to repurchase them at 101% of principal plus accrued and unpaid interest.
The indenture also contains limited covenants restricting liens and sale-and-leaseback transactions by Workday and its restricted subsidiaries, alongside customary default provisions.
Conclusion
With the financing completed, the next step to watch is Workday’s planned retirement of the April 2027 debt. The first interest payment on the new notes is scheduled for April 23, 2027.
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