Viavi Solutions Optimizes Debt Structure with Strategic Note Exchange for Common Stock
- Viavi Solutions is exchanging $103.463 million in notes for approximately 7.87 million shares to optimize its financial structure.
- The transaction aims to enhance liquidity and reduce debt, retaining about $49.037 million of outstanding notes.
- Viavi plans to prepay at least $100 million of its Term Loan Credit Facility, strengthening its balance sheet for future growth.
Viavi Solutions Streamlines Debt with Strategic Note Exchange
Viavi Solutions Inc. announces a significant strategic move aimed at optimizing its financial structure by executing privately negotiated agreements for its 1.625% Convertible Senior Notes due 2026. The company exchanges $103.463 million in notes for approximately 7.87 million shares of its common stock, priced at $17.88 per share. This transaction, expected to close around December 22, 2025, is a part of Viavi's broader strategy to manage its debt more effectively. Following the exchange, the company will retain about $49.037 million of the outstanding notes, a maneuver designed to enhance its liquidity position and reduce overall financial obligations.
This exchange is particularly noteworthy as it is executed without any cash proceeds flowing to Viavi Solutions. Instead, the company intends to use this strategic action as a stepping stone to prepay at least $100 million of its Term Loan Credit Facility, which totals $600 million and was established in October 2025. By reducing its debt obligations, Viavi aims to strengthen its balance sheet and position itself for future growth within the competitive landscape of network test, monitoring, and assurance solutions. The transaction highlights Viavi's commitment to maintaining a robust financial foundation while navigating the evolving demands of the telecommunications, cloud, and military sectors.
The participants in this transaction include institutional accredited investors and qualified institutional buyers, as classified under relevant regulations. Viavi Solutions emphasizes that the shares involved in this exchange have not been registered under the Securities Act and cannot be sold without the necessary exemptions. This cautious approach ensures compliance with regulatory frameworks while allowing the company to optimize its capital structure.
In addition to the note exchange, Viavi Solutions continues to reinforce its position as a leader in light management technologies and network solutions across various sectors. The company remains focused on innovation and delivering value to its clients, underscoring its importance in an industry that demands reliable and efficient communication infrastructure.
Looking ahead, Viavi Solutions expresses optimism through forward-looking statements concerning its plans for debt prepayment and other strategic initiatives. The company is aware of the inherent risks and uncertainties involved but remains committed to executing its strategy to foster sustainable growth and shareholder value in a rapidly advancing technological landscape.
