Summary
Lumentum Holdings Inc. (LITE) has entered into a new $400.0 million senior secured revolving credit facility with Wells Fargo Bank, National Association, as administrative agent. This facility, effective December 19, 2025, matures on December 19, 2030, with provisions for an earlier maturity linked to existing convertible senior notes. The proceeds are intended for working capital and general corporate purposes, providing Lumentum with enhanced financial flexibility. The credit agreement includes customary covenants and financial tests, requiring Lumentum to maintain a secured net leverage ratio below 3.25:1.00 (with a potential step-up) and an interest coverage ratio of at least 3.00:1.00. The facility is secured by substantially all assets of the company and its material domestic subsidiaries. Notably, the agreement allows for unlimited incremental revolving commitments and term loans, subject to certain conditions, underscoring the company's potential for future growth and financing needs.
Key Highlights
- 1New $400.0 million senior secured revolving credit facility established.
- 2Maturity date set for December 19, 2030, with potential for earlier maturity tied to convertible notes.
- 3Proceeds are designated for working capital and general corporate purposes.
- 4Facility includes a $23.0 million sublimit for letters of credit.
- 5Unlimited incremental loan capacity is available, subject to customary conditions.
- 6Key financial covenants include a secured net leverage ratio not exceeding 3.25:1.00 and an interest coverage ratio of at least 3.00:1.00.
- 7The credit facility is secured by substantially all assets of the company and its subsidiary guarantors.