Business
LivePerson Announces Deleveraging Transaction
Enters into agreement to exchange $341.1 million of its outstanding 2026 Convertible Senior Notes for $45.0 million in cash, $115.0 million of 2029 Senior
About this update from Liveperson, Inc.
[{"type":"text","content":"Enters into agreement to exchange $341.1 million of its outstanding 2026 Convertible Senior Notes for $45.0 million in cash, $115.0 million of 2029 Senior Subordinated Secured Notes and Common and Preferred Equity \nNEW YORK, Aug. 11, 2025 /PRNewswire/ -- LivePerson, Inc. (NASDAQ: LPSN) (\"LivePerson,\" the \"Company,\" \"we\" or \"us\"), a leading provider of trusted enterprise conversational AI and outcome-driven digital transformation, today announced that holders of an aggregate $341.1 million principal amount of the Company's Convertible Senior Notes due 2026 (the \"Noteholders\" and such notes, the \"2026 Notes\"), have entered into a binding agreement to exchange (the \"Exchange\") their 2026 Notes for a mix of consideration, consisting of (i) $45.0 million of cash, (ii) $115.0 million of 10.0% Senior Subordinated Secured Notes due 2029 (the \"New Secured Notes\"), (iii) shares of Series B Fixed Rate Convertible Perpetual Preferred Stock (\"Series B Preferred Stock\") and (iv) shares of the Company's common stock (the \"Common Equity Shares,\" together with the New Secured Notes and the Series B Preferred Stock, the \"New Securities\") in an amount which, together with the number of shares into which the Series B Preferred Stock is convertible, will equal 39.0% of the Company's fully diluted common stock outstanding following the closing of the Exchange (the \"Aggregate Equity Amount\"). \n\n \n \n \n \n \n \n\n \n\"Today's transaction represents the successful culmination of our multi-year strategy to deleverage the balance sheet,\" said John Collins, CFO and COO. \"This exchange captures $181 million of debt discount that accretes to shareholders, deleverages the balance sheet by $226 million, and extends LivePerson's runway through 2029. In sum, we believe this exchange shifts a greater proportion of enterprise value to shareholders, and provides the company with time to execute its strategy, reinforcing its position as a long-term strategic partner to customers, and creating runway to further enhance value for shareholders.\"\nThe Exchange is subject to customary closing conditions and is expected to occur by the end of September. \nThe New Secured Notes will be guaranteed by certain of the Company's direct and indirect domestic and foreign subsidiaries and secured by a second-priority lien on substantially all assets...