8-KOther Events

CIENA CORP 8-K Report, Corporate Update (Mar 16, 2015)

Filed March 16, 2015For Securities:CIEN

Summary

Ciena Corporation (CIEN) filed an 8-K on March 16, 2015, to report the maturity of its outstanding 4.0% Convertible Senior Notes due 2015. A significant majority of these notes, specifically 96.3% representing approximately $180.6 million in principal, were settled through the issuance of Ciena's common stock. This indicates a substantial conversion by noteholders into equity rather than seeking cash repayment. As a result of these conversions and related private exchange transactions, Ciena issued approximately 8.9 million shares of its common stock. Only a small portion, around $6.9 million in aggregate principal, was repaid in cash at maturity. This transaction effectively eliminated a substantial portion of Ciena's convertible debt through equity dilution, which is a key consideration for existing shareholders.

Key Highlights

  • 1Ciena Corporation's 4.0% Convertible Senior Notes due 2015 matured on March 15, 2015.
  • 2Approximately 96.3% of the outstanding 2015 Notes, totaling $180.6 million in principal, were converted into Ciena common stock.
  • 3The company issued approximately 8.9 million shares of common stock to settle these conversions and exchanges.
  • 4Only a small amount, approximately $6.9 million in principal, was repaid in cash.
  • 5This event significantly reduces Ciena's outstanding convertible debt by converting it into equity.
  • 6The majority of noteholders opted for conversion into stock, reflecting their confidence or preference for equity.

Frequently Asked Questions

The 4.0% Convertible Senior Notes due 2015 matured on March 15, 2015. The vast majority (96.3%) of these notes were converted by holders into Ciena's common stock, while a small portion was repaid in cash.

Ciena issued approximately 8.9 million shares of its common stock to settle the conversions and exchanges of the 2015 Notes.

Approximately $180.6 million in aggregate principal amount of the 2015 Notes was settled through the issuance of Ciena's common stock.

Only a minor portion of the notes, approximately $6.9 million in aggregate principal, was repaid in cash at maturity. The substantial majority was settled with Ciena stock.