Lumentum talks $850 million convertible notes due 2026 to yield 0.25%-0.75%, up 40%-45%

By Abigail W. Adams

Portland, Me., Dec. 9 – Lumentum Holdings Inc. plans to price $850 million convertible notes due 2026 after the market close on Monday with price talk for a coupon of 0.25% to 0.75% and an initial conversion premium of 40% to 45%, according to a market source.

Goldman Sachs & Co. LLC is the bookrunner on the Rule 144A offering, which carries a greenshoe of $127.5 million.

Approximately $200 million of the proceeds will be used for a stock buyback, $196 million will be used to repay the term loan, with the remaining amount to be used for general corporate purposes.

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

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