EL7.AI
StocksMedium•22 October 2026•
2 min read

Workday plans to use bond sale proceeds to refinance $1.0 billion in debt

Key Facts

1Outstanding notes due April 1, 2027, total about $1.0 billion and carry a 3.500% coupon.
2Cash, cash equivalents and marketable securities totaled $3.403 billion as of July 31, 2026.
3Operating cash flow totaled $520 million, compared with $616 million in the same period a year earlier.
4The company repurchased about 9.8 million shares for $1.3 billion during the fiscal second quarter.

Workday plans to use proceeds from a new bond offering to refinance its outstanding notes due April 1, 2027, with a face value of $1.0 billion, according to its preliminary prospectus and quarterly report filed with the U.S. Securities and Exchange Commission. The outstanding notes carry a 3.500% coupon, according to the company's quarterly report. Workday specified in the prospectus that proceeds would be used to "redeem, repay, repurchase or otherwise discharge" the obligations. The planned use of funds therefore includes repaying the debt at maturity or discharging the obligation through the other alternatives specified in the prospectus. The company plans to allocate any remaining proceeds to general corporate purposes.

According to the preliminary prospectus, the new notes will be senior and unsecured. They will rank equally in right of payment with Workday's other senior unsecured obligations. The company described their position among those obligations as "equal in right of payment." This equality applies to the priority of claims for repayment, while the notes remain part of the company's unsecured debt. Workday also said in the prospectus that "the notes will not be listed on any securities exchange."

The financing plan comes after Workday reported cash, cash equivalents and marketable securities of $3.403 billion as of July 31, 2026, according to its second-quarter earnings release. Operating cash flow in the latest reported quarter totaled $520 million. That compared with operating cash flow of $616 million in the same period a year earlier, according to the same release. Meanwhile, the company's revenue in the second quarter of fiscal 2027 grew 12.8% year on year. Total quarterly revenue was $2.649 billion, according to the company's results. During the same fiscal second quarter, Workday repurchased about 9.8 million shares of its Class A common stock. The repurchases totaled $1.3 billion, according to the company's earnings release.

Workday's outstanding debt also includes notes with an aggregate face value of $750 million, according to its quarterly report filed with the U.S. Securities and Exchange Commission. These notes carry a 3.700% coupon. They mature on April 1, 2029, according to the report. On credit facilities, the company's credit agreement allows it to borrow, repay and reborrow revolving loans, according to the agreement filed with the U.S. regulator. These transactions remain available until October 1, 2031, the date specified in the agreement as the end of the borrowing, repayment and reborrowing period.