- Viavi Solutions ( NASDAQ: VIAV ) entered into privately negotiated exchange and/or subscription agreements with certain holders of its outstanding 1.00% Senior Convertible Notes due 2024 and certain new investors wherein the company will issue $250M principal amount of its 1.625% Senior Convertible Notes due 2026.
- The notes will consist of ~$132M principal amount of New Notes in exchange for ~$128M principal amount of the 2024 Notes and ~$118M principal amount of New Notes for cash.
- In connection with the issuance of the New Notes, the company expects to repurchase up to $30M of shares.
- New Notes will be convertible at the holders option with initial conversion rate is 75.7963 shares of VIAVI common stock per $1,000 principal amount of new notes equal to an initial conversion price of ~$13.19/share.
- Post the exchange transactions, ~$96M in principal amount of 2024 Notes will remain outstanding with terms unchanged.
- The exchange transactions and the subscription transactions are expected to close concurrently on or about Mar. 6, 2023.
- The New Notes will mature on Mar.15, 2026 new notes and will pay interest semi-annually in arrears, commencing on Sep.15, 2023 at an annual rate of 1.625%.
For further details see:
VIAVI launches private convertible exchange and subscription transactions