Tyler Technologies closed an upsized convertible note offering totaling $1.4375 billion, after the initial purchasers exercised in full their option to buy an additional $187.5 million of principal.
The company said it took in about $1.4081 billion in net proceeds after discounts, commissions and expenses. From that amount, Tyler used about $187.2 million to fund capped call transactions and about $320.7 million to repurchase 1,026,900 shares of its common stock.
That share buyback brings Tyler’s year-to-date repurchases to roughly 2.1 million shares for about $667 million. In the same period, the company said it has used part of its capital-raising effort to continue executing on its $1 billion share repurchase authorization.
The notes carry a 0.50% annual interest rate and mature on July 15, 2031. The initial conversion price is about $405.94 per share, which is roughly 30% above Tyler’s last reported sale price of $312.27 on May 11, 2026.
After the capped call transactions, Tyler said the effective conversion price rises to about $655.77 per share, a premium of roughly 110% to the May 11 closing price.
Tyler said the remaining net proceeds will be used for general corporate purposes. Following these announcements, the company's shares moved -3.34%, and are now trading at a price of $299.31. For the full picture, make sure to review TYLER TECHNOLOGIES INC's 8-K report.
