Lumentum greenshoe ups long six-year convertibles to $603.75 million

By William Gullotti

Buffalo, N.Y., June 16 – Underwriters for Lumentum Holdings Inc.’s upsized $525 million of 1.5% convertible senior notes due Dec. 15, 2029 (Cusip: 55024UAG4) exercised in full their $78.75 million greenshoe on Wednesday to increase the total issue size to $603.75 million, according to an 8-K filing with the Securities and Exchange Commission.

The company priced the initial offering after the market close on Tuesday at par with an initial conversion premium of 30%.

Goldman Sachs & Co. LLC and Deutsche Bank Securities Inc. were the bookrunners for the Rule 144A offering.

As previously reported, the notes are non-callable until June 22, 2026 and then subject to a 130% hurdle.

There is takeover and dividend protection.

The notes will be settled in cash, shares or a combination of both at the company’s option.

With the greenshoe fully exercised, Lumentum’s net proceeds will be $598.2 million.

Approximately $132.8 million of net proceeds will be used to repurchase $125 million in principal of the company’s 0.25% convertible notes due 2024, and $125 million will be used for the purchase of common stock in privately negotiated transactions.

Remaining proceeds will be used for general corporate purposes, which may include the repayment or repurchase of debt.

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

© 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.