Lumentum talks $750 million six-year convertible notes to yield 0.375%-0.875%, up 27.5%-32.5%

By Abigail W. Adams

Portland, Me., March 3 – Lumentum Holdings Inc. plans to price $750 million of convertible notes due June 15, 2028 after the market close on Thursday with price talk for a coupon of 0.375% to 0.875% and an initial conversion premium of 27.5% to 32.5%, according to a market source.

Goldman Sachs & Co. LLC (lead left) and BofA Securities Inc. are bookrunners for the Rule 144A offering, which carries a greenshoe of $112.5 million.

The notes are non-callable until June 20, 2025 and then subject to a 130% hurdle.

There is takeover and dividend protection.

Concurrently, the company will repurchase $250 million of its common stock in privately negotiated transactions.

Proceeds will be used for the stock repurchase and general corporate purposes.

Lumentum is a San Jose, Calif.-based designer and manufacturer of optical and photonic products.

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