Street Calls of the Week
Investing.com -- ADTRAN Holdings, Inc. (NASDAQ:ADTN) stock tumbled 13% Tuesday after the company announced plans to offer $150 million in convertible senior notes due 2030 in a private placement to qualified institutional buyers.
The telecommunications equipment provider said the notes will be senior, unsecured obligations that will mature on September 15, 2030, unless earlier repurchased, redeemed, or converted. ADTRAN also plans to grant the initial purchaser an option to buy up to an additional $22.5 million in notes.
The company intends to use part of the proceeds to fund capped call transactions designed to reduce potential dilution to its common stock upon conversion of the notes. The remainder will be used to repay a portion of outstanding borrowings under its credit agreement from July 2022.
The notes will be convertible under certain circumstances, with ADTRAN settling conversions through a combination of cash and shares of its common stock at its discretion.
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