OneStream's Strategic Move: Exercising Option for Additional Shares

In today's fast-paced investment landscape, companies are constantly looking for ways to raise capital and maintain their competitive edge. OneStream, Inc., a leading enterprise finance platform, has recently made a strategic move by exercising the underwriters' option to purchase an additional 2,250,000 shares in a secondary offering. Let's delve into the intricacies of this transaction and understand its implications for the company and its shareholders.

OneStream's strategic move comes on the heels of a previously announced offering of 15,000,000 shares. The underwriters, led by Morgan Stanley, J.P. Morgan, and KKR, have fully exercised their option to purchase the additional shares at a price of $31.00 per share, less underwriting discounts and commissions. This secondary offering has raised an additional $69.75 million (2.25M shares at $31.00) for OneStream.



The transaction was structured as a partial synthetic secondary, with OneStream using all the net proceeds to purchase LLC units of OneStream Software LLC from KKR Dream Holdings LLC. This structure allows OneStream to maintain its capital structure while providing liquidity for early investors. By purchasing LLC units and canceling an equal number of Class C common stock, OneStream neutralizes the dilution effect of the additional shares sold, ensuring that the total number of outstanding shares and LLC units remains unchanged.

OneStream's strategic move highlights the company's commitment to maintaining its capital structure while providing liquidity for early investors. By using the net proceeds to purchase LLC units, OneStream avoids diluting the existing shareholder base, which could have negatively impacted shareholder value. Instead, OneStream has chosen to strengthen its financial flexibility and position itself for future growth.

In conclusion, OneStream's strategic move in exercising the underwriters' option for additional shares demonstrates the company's ability to balance the needs of its shareholders with its long-term growth prospects. By maintaining its capital structure and providing liquidity for early investors, OneStream has taken a significant step towards solidifying its position in the enterprise finance platform market. This strategic move is a testament to OneStream's commitment to responsible capital allocation and shareholder value.