Lumentum Holdings Inc. Announces Pricing of $900 Million Convertible Notes Offering

About this update from Lumentum Holdings Inc.

[{"type":"text","content":"SAN JOSE, Calif., Dec. 9, 2019 /PRNewswire/ -- Lumentum Holdings Inc. (\"Lumentum\") (NASDAQ: LITE) today announced the pricing of $900 million aggregate principal amount of convertible senior notes due 2026 (the \"notes\") in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the \"Act\"). The size of the offering was increased from the previously announced $850 million in aggregate principal amount. Lumentum granted the initial purchaser of the notes a 13-day option to purchase up to an additional $150 million aggregate principal amount of the notes. The sale of the notes to the initial purchaser is expected to settle on December 12, 2019, subject to customary closing conditions, and is expected to result in approximately $892.5 million in net proceeds to Lumentum after deducting the initial purchaser's discount and estimated offering expenses payable by Lumentum (assuming no exercise of the initial purchaser's option).\nThe notes will be senior, unsecured obligations of Lumentum. The notes will bear interest at a rate of 0.50% per year. Interest will be payable semi-annually in arrears on June 15 and December 15 of each year, beginning on June 15, 2020. The notes will mature on December 15, 2026, unless earlier redeemed, repurchased or converted.\nLumentum intends to use approximately $196 million of the net proceeds of the offering to repay in full all amounts outstanding under its term loan credit facility, and a portion of the net proceeds of the offering to purchase approximately $200 million of its common stock concurrently with the pricing of this offering in privately negotiated transactions effected through the initial purchaser of the notes or its affiliates as its agent. Lumentum intends to use the remainder of the net proceeds of the offering for general corporate purposes, which may include capital expenditures, working capital and potential acquisitions.\nThe initial conversion rate for the notes is 10.0711 shares of Lumentum common stock (\"common stock\") per $1,000 principal amount of notes (which is equivalent to an initial conversion price of approximately $99.29 per share) and is subject to adjustment upon the occurrence of certain events. Prior to the close of business on the business day immediately preceding September 15, 2026, the no...

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