ADTRAN Holdings, Inc. announced on September 16, 2025, the pricing of its offering of $175.0 million aggregate principal amount of 3.75% convertible senior notes due 2030. The offering was upsized from the previously announced $150.0 million aggregate principal amount.
The notes will be senior, unsecured obligations of the company, accruing interest at 3.75% per annum, payable semi-annually. The initial conversion rate is 86.8206 shares of common stock per $1,000 principal amount of notes, representing an initial conversion price of approximately $11.52 per share, a premium of approximately 30% over the closing stock price on September 16, 2025.
The company estimates net proceeds of approximately $168.1 million, which it intends to use to fund $15.3 million for capped call transactions and repay approximately $152.8 million of outstanding borrowings under its Credit Agreement. The capped call transactions are expected to reduce potential dilution upon conversion of the notes.
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