By Susanna Moon
Chicago, May 23 – Viavi Solutions Inc. agreed to exchange $151.5 million of its 0.625% senior convertible notes due 2033 for $155.5 million of newly issued 1.75% senior convertible notes due June 1, 2023.
After the exchange, $277 million principal amount of the 2033 notes will remain outstanding with the terms unchanged, according to a company announcement.
Viavi said it entered into privately negotiated agreements with some holders of the 0.625% notes on May 22.
That day, the company also entered into subscription agreements to sell $69.5 million principal amount of new notes in a private placement to institutional accredited investors.
The new notes will be convertible into cash, shares of Viavi’s common stock or a combination of cash and stock at an initial conversion rate of 71.7231 shares per $1,000 principal amount of new notes, which is an initial conversion price of about $13.94 per share for conversion premium of 37.5%.
The company said it will not receive any cash proceeds from the exchange.
Proceeds from the private placement are for general corporate purposes.
Viavi is a Milpitas, Calif.-based network test, measurement and assurance technology company.
New notes
| Issuer: | Viavi Solutions Inc.
|
| Issue: | Senior convertible notes
|
| Amount: | $155.5 million exchange, $69.5 million private placement
|
| Maturity: | June 1, 2023
|
| Coupon: | 1.75%
|
| Conversion premium: | 37.5%
|
| Conversion price: | $13.94
|
| Conversion rate: | 71.7231 shares per $1,000 principal amount
|
| Call option: | At par beginning June 1, 2021
|
| Pricing date: | May 23
|
| Settlement date: | May 29
|
| Stock symbol: | Nasdaq: VIAV
|
| Stock price: | $10.14 at close on May 22
|
| Market capitalization: | $2.28 billion
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
