By Stephanie N. Rotondo
Seattle, March 3 – Lumentum Holdings Inc. priced $400 million of convertible senior notes due 2024 at par to yield 0.25% with an initial conversion premium of 32.5% on Friday, according to a press release.
Pricing came at the rich end of the 0.25% to 0.75% yield talk and beyond the rich end of the 25% to 30% premium talk. The deal was also upsized from $350 million.
Goldman Sachs & Co. is the bookrunner. Lead manager is Stifel Nicolaus & Co. Inc.
The Rule 144A deal includes a $50 million over-allotment option, which was decreased from $52.5 million.
The initial conversion rate is 16.4965 shares per each $1,000 of notes, equal to $60.62 per share.
Prior to Dec. 15, 2023, the notes are contingently convertible, at the holder’s option, into cash, common stock or both, at the company’s choosing. However, the bonds cannot be converted into common stock unless certain restrictions are satisfied by the company.
After Dec. 15, 2023, the notes are convertible at any time.
Proceeds will be used for general corporate purposes, which may include capital expenditures.
Lumentum is a Milpitas, Calif.-based manufacturer of innovative optical and photonic products.
| Issuer: | Lumentum Holdings Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $400 million
|
| Greenshoe: | $50 million
|
| Maturity: | March 15, 2024
|
| Bookrunner: | Goldman Sachs & Co.
|
| Lead manager: | Stifel Nicolaus & Co. Inc.
|
| Coupon: | 0.25%
|
| Price: | Par of $1,000
|
| Yield: | 0.25%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $60.62 per share
|
| Conversion rate: | 16.4965
|
| Contingent conversion: | Yes, prior to Dec. 15, 2023
|
| Net share settlement: | Yes
|
| Pricing date: | March 3
|
| Settlement date: | March 8
|
| Distribution: | Rule 144A
|
| Talk: | 0.25% to 0.75% yield, up 25% to 30%
|
| Stock symbol: | Nasdaq: LITE
|
| Stock price: | $45.75 as of March 2 close
|
| Market capitalization: | $2.78 billion
|
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