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CHANDLER, Ariz. - Viavi Solutions Inc. (NASDAQ:VIAV), a $2.46 billion market cap technology company with annual revenues of $1.08 billion, announced on Thursday it has entered into agreements to issue $250 million in 0.625% Senior Convertible Notes due 2031 through a combination of exchange and subscription transactions. According to InvestingPro data, the company maintains a healthy gross margin of 59.48%.
The offering consists of approximately $100.9 million in new notes exchanged for $97.5 million of the company’s existing 1.625% Senior Convertible Notes due 2026, plus approximately $149.1 million in new notes sold for cash to investors.
Following the transactions, which are expected to close around August 20, approximately $152.5 million of the 2026 Notes will remain outstanding with unchanged terms.
The new notes will mature on March 1, 2031, paying interest semi-annually at 0.625% per annum. They will be convertible into cash and potentially shares of Viavi’s common stock under certain conditions, with an initial conversion price of approximately $13.79 per share, representing a 25% premium over the August 13 closing price of $11.03. InvestingPro analysis indicates the stock is currently trading near its Fair Value, with 4 analysts recently revising their earnings estimates upward.
Viavi plans to use proceeds from the cash subscription portion to repay part of the 2026 Notes at maturity. The company also expects to repurchase approximately $30 million of its common stock in private transactions at $11.03 per share using cash on hand.
The notes were offered only to institutional accredited investors and qualified institutional buyers under exemptions from Securities Act registration requirements.
Viavi Solutions provides network test, monitoring and assurance solutions for telecommunications and other industries, as well as light management technologies for various applications. The company has demonstrated strong recent performance, with an 8.56% return over the past week. For deeper insights into VIAV’s financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.
This article is based on a press release statement from the company.
In other recent news, Viavi Solutions has reported strong financial results for the fourth quarter of fiscal year 2025. The company posted earnings per share of $0.13, surpassing forecasts and marking a notable performance in its OSP segment. Revenue also exceeded expectations, coming in at $290.5 million, compared to the anticipated $285.18 million, representing a 15% year-over-year increase. Following these results, Susquehanna upgraded Viavi Solutions from Neutral to Positive, citing potential for annualized earnings per share of $0.80 or higher, and set a price target of $15.00. Rosenblatt Securities also raised its price target for the company to $15.00 from $13.50, maintaining a Buy rating due to Viavi’s strong quarterly results and guidance. These developments reflect positively on Viavi Solutions’ performance and potential in the AI fiber and data center markets.
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