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Harmonic Inc. Announces Exchange of Convertible Notes
SAN JOSE, Calif., May 29, 2020 /PRNewswire/ -- Harmonic Inc. ("Harmonic") (NASDAQ: HLIT) today announced that it has entered into separate privately
About this update from Harmonic Inc.
[{"type":"text","content":"SAN JOSE, Calif., May 29, 2020 /PRNewswire/ -- Harmonic Inc. (\"Harmonic\") (NASDAQ: HLIT) today announced that it has entered into separate privately negotiated transactions to exchange approximately $36.8 million in aggregate principal amount of its 4.00% Convertible Senior Notes due 2020 (the \"Existing Notes\") for approximately $36.8 million in aggregate principal amount of 4.375% Convertible Senior Notes due 2022 (the \"Exchange Notes\" and such transactions, the \"Exchange\"). The Exchange Notes will be issued pursuant to an Indenture, to be dated the date of closing of the Exchange (the \"Indenture\"), between the Company and U.S. Bank National Association (the \"Indenture\").\n\n \n \n \n \n \n \n\n \nEach $1,000 principal amount of Existing Notes will be exchanged for $1,000 principal amount of Exchange Notes. \nThe Exchange Notes will be senior, unsecured obligations of Harmonic and will bear interest at a rate of 4.375% per year. Interest will be payable semi-annually in arrears on June 1 and December 1 of each year, beginning on December 1, 2020. The Exchange Notes will mature on December 1, 2022, unless earlier converted, redeemed or repurchased in accordance with the terms of the Exchange Notes.\nThe Exchange Notes have an initial conversion rate of 173.9978 shares of common stock per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $5.75 per share of Harmonic's common stock. Conversions of the Exchange Notes will be settled in cash, shares of Harmonic's common stock or a combination thereof, at Harmonic's election. \nHolders may convert all or a portion of their notes at their option at any time prior to the close of business on the business day immediately preceding September 1, 2022, only upon the satisfaction of certain conditions and during certain time periods. On or after September 1, 2022 until the close of business on the second scheduled trading day immediately preceding December 1, 2022, holders may convert their notes at any time, without condition.\nHolders may require Harmonic to repurchase their notes upon the occurrence of a fundamental change (as defined in the indenture governing the notes) at a repurchase price equal to the principal amount thereof plus accrued and unpaid interest to, but excluding, the repurchase date. In addition, upon the o...