🔴 LITE is trading 5.2% down on $650M debt-for-equity swap announcement

LITE is trading at $811.00 (-5.2%) in pre-market after the company announced a major balance sheet restructuring.

• On June 1, Lumentum revealed it had entered into agreements on May 29 to exchange ~$650.4 million of its 0.50% Convertible Senior Notes due 2028 for approximately 5.0 million shares of common stock.
• The transaction effectively reduces the company's debt but will dilute existing shareholders, which is likely driving the negative price reaction.
• After the exchange, which is expected to close around June 4, approximately $172.2 million in principal amount of the notes will remain outstanding.