Lumentum Holdings Inc. announced its intention to offer $1.1 billion aggregate principal amount of convertible senior notes due in 2032 through a private placement to qualified institutional buyers. The company also expects to grant initial purchasers an option to buy up to an additional $165.0 million in notes.
The notes will be senior, unsecured obligations of Lumentum, with interest payable semi-annually. A portion of the net proceeds will be used to pay the cost of capped call transactions, which are expected to reduce potential dilution to common stock upon conversion of the notes.
Lumentum intends to use another portion of the net proceeds to repurchase a portion of its 0.50% Convertible Senior Notes due 2026 concurrently with the offering. The remaining net proceeds are earmarked for general corporate purposes, including the repayment or repurchase of indebtedness, capital expenditures, working capital, and potential acquisitions, providing significant financial flexibility for future growth.
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