Summary
Lumentum Holdings Inc. (LITE) announced today that it has entered into privately-negotiated exchange agreements with certain holders of its 0.50% Convertible Senior Notes due 2028. Through these agreements, Lumentum will issue approximately 5.0 million shares of its common stock in exchange for approximately $650.4 million principal amount of these convertible notes. This exchange transaction is expected to reduce the outstanding principal amount of these notes significantly, with approximately $172.2 million expected to remain outstanding after the exchange. The company will not receive any cash proceeds from these transactions, as it is effectively retiring debt by issuing equity.
Key Highlights
- 1Lumentum is exchanging approximately $650.4 million of its 0.50% Convertible Senior Notes due 2028 for roughly 5.0 million shares of common stock.
- 2The exchange transactions are being conducted as a private placement, exempt from registration under the Securities Act.
- 3The company expects approximately $172.2 million in principal amount of these convertible notes to remain outstanding after the closing of the exchange.
- 4These transactions are not expected to provide any cash proceeds to Lumentum; rather, it's a debt-for-equity swap.
- 5The issuance of shares is expected to result in incremental dilution of approximately 0.8 million shares of common stock related to the principal amount exchanged.
- 6The exchange transactions are anticipated to close around June 4, 2026.
- 7Participating noteholders are believed to be accredited investors or qualified institutional buyers.