Business
LivePerson Strengthens Capital Structure
Enters into agreement to exchange $146 million of its outstanding 2026 Convertible Senior Notes for $100 million of 2029 Convertible Senior Secured Notes
About this update from Liveperson, Inc.
[{"type":"text","content":"Enters into agreement to exchange $146 million of its outstanding 2026 Convertible Senior Notes for $100 million of 2029 Convertible Senior Secured Notes \nReceives commitment for $100 million of new capital in the form of 2029 Convertible Senior Secured Notes to facilitate further deleveraging\nNEW YORK, May 13, 2024 /PRNewswire/ -- LivePerson, Inc. (Nasdaq: LPSN) (\"LivePerson\" the \"Company\", \"we\" or \"us\"), the enterprise leader in digital customer conversations, today announced that its largest existing notes investor, Lynrock Lake Master Fund LP (\"Lynrock\"), has entered into a binding agreement to exchange (the \"Exchange\") its existing approximately $146 million principal amount of Senior Convertible Notes due 2026 for $100 million of new Senior Secured Convertible Notes due 2029 (the \"New Notes\"). In addition, Lynrock has agreed to provide the Company with $100 million of new capital in the form of additional New Notes, with $50 million to be purchased concurrently with the Exchange and another $50 million to be purchased within six months of the Exchange upon the Company's request.\n\n \n \n \n \n \n \n\n \n\"Today's transaction significantly improves our capital structure by enabling us to capture some of the discounted current market price of our 2026 Convertible Senior Notes, extend our debt maturity schedule, and raise new capital to facilitate further deleveraging,\" said John Collins, CFO and COO. \"With a stronger balance sheet, LivePerson is well positioned to meet the needs of our customers and partners for the long run and to accelerate value creation for shareholders. We appreciate Lynrock's support and continued confidence in our strategy and vision.\"\nThe New Notes will be secured and guaranteed by certain of the Company's subsidiaries on a senior secured basis. Concurrently with the Exchange, Lynrock will also be issued 10-year warrants exercisable for 11% of the Company's common stock, calculated on a fully diluted basis, with a strike price of $0.75 per share. The Exchange and purchase of New Notes are subject to customary closing conditions and are expected to occur by the end of May.\nAdditional details with respect to the purchase and exchange agreement and the new notes will be filed today in an 8-K with the Securities and Exchange Commission.\nAbout LivePersonLivePerson (NASDAQ: LPSN) is ...