VIAVI Solutions Inc. announced on August 14, 2025, that it entered into privately negotiated exchange and/or subscription agreements for $250 million aggregate principal amount of its 0.625% Senior Convertible Notes due 2031. These transactions, expected to close around August 20, 2025, involve issuing approximately $100.9 million principal amount of new notes in exchange for $97.5 million principal amount of outstanding 1.625% Senior Convertible Notes due 2026, and approximately $149.1 million principal amount of new notes for cash.
Following the closing of the exchange transactions, approximately $152.5 million in aggregate principal amount of the 2026 Notes will remain outstanding with unchanged terms. VIAVI will not receive any cash proceeds from the exchange transactions, as it will receive and cancel the exchanged 2026 Notes. The estimated gross cash proceeds from the subscription transactions, approximately $149.1 million, are expected to be used to repay a portion of the 2026 Notes due upon maturity.
In connection with the issuance of the new notes, VIAVI expects to repurchase approximately $30 million of shares of its common stock under a previously announced board authorization for share repurchases. These repurchases will be conducted using cash on hand in privately negotiated transactions from certain purchasers of the new notes at a price of $11.03 per share. This financing move aims to manage debt maturities and return value to shareholders.
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