Lumentum greenshoe lifts 0.25% convertibles due 2024 to $450 million

By Wendy Van Sickle

Columbus, Ohio, March 8 – Underwriters for Lumentum Holdings Inc.’s 0.25% convertible senior notes due March 15, 2024 fully exercised their $50 million over-allotment option, lifting the total deal sized to $450 million, according to an 8-K filing with the Securities and Exchange Commission.

The company priced $400 million of the convertibles at par with an initial conversion premium of 32.5% on March 2.

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, as previously reported. The Rule 144A deal was upsized from $350 million.

The over-allotment option was decreased from $52.5 million.

Goldman Sachs & Co. is the bookrunner. Lead manager is Stifel Nicolaus & Co. Inc.

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 requirements 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.

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