Ciena Corporation announced its intention to offer $2.0 billion in aggregate principal amount of convertible senior notes due 2031 in a private placement. The company intends to use the net proceeds to repay existing debt, repurchase shares, and for general corporate purposes. This offering is part of a broader refinancing strategy that also includes an amendment to its existing credit agreement.
Key Details
- Offering Size: $2.0 billion in convertible senior notes due 2031, with an option for initial purchasers to buy an additional $300 million.
- Use of Proceeds: The company plans to use the funds to repay approximately $1.14 billion of its senior secured term loan, repurchase up to $140 million of its common stock, fund related hedge transactions, and for general corporate purposes, including supply chain investments.
- Related Transactions: In connection with the offering, Ciena is also amending its credit agreement to extend the maturity of its revolving credit facility from 2028 to 2030. The completion of the notes offering is conditional on this amendment.