Lumentum to Exchange $474.6M in Convertible Notes for 5.7M Common Shares, Reducing Debt
Lumentum Holdings Inc. announced it has entered into privately-negotiated exchange agreements to convert approximately $474.6 million in aggregate principal amount of its 0.50% Convertible Senior Notes due 2026 and 1.50% Convertible Senior Notes due 2029 into approximately 5.7 million shares of its common stock. This strategic move will significantly reduce the company's outstanding convertible debt obligations without any cash outflow, enhancing its balance sheet flexibility. While the transaction results in an increase in the number of outstanding shares, including an incremental dilution of approximately 0.6 million shares related to the principal amounts, it effectively manages upcoming debt maturities and strengthens the company's financial position. The Exchange Transactions are expected to close on or about April 13, 2026.
Key Highlights
- Lumentum entered into agreements to exchange approximately $264.8 million principal amount of its 0.50% Convertible Senior Notes due 2026.
- The company will also exchange approximately $209.8 million principal amount of its 1.50% Convertible Senior Notes due 2029.
- The total aggregate principal amount of convertible notes exchanged is approximately $474.6 million.
- In exchange for the notes, Lumentum will deliver an aggregate of approximately 5.7 million shares of its common stock.
- The Exchange Transactions are expected to result in incremental dilution of approximately 0.6 million shares of common stock related to the principal amounts of the notes.
- Following the closing, approximately $63.1 million in aggregate principal amount of 2026 Notes and $84.5 million in aggregate principal amount of 2029 Notes will remain outstanding.