Infinera Completes $373.75 Million Convertible Senior Notes Offering and Repurchases Approximately $300 Million of 2024 Convertible Notes
Infinera announced the closing of its offering of $373.75 million in 3.75% convertible senior notes due 2028. The company received net proceeds of approximately $362.50 million, using about $283.62 million to repurchase approximately $300 million of its 2.125% convertible senior notes due 2024. This strategic move aims to strengthen its financial position and support general corporate purposes and growth opportunities. CFO Nancy Erba stated this transaction marks a positive step toward executing the company's 8x4x1 strategy.
- Raised $362.50 million from 2028 notes offering to strengthen financial position.
- Repurchased $300 million of 2.125% convertible senior notes, enhancing cash flow management.
- Supports growth opportunities and strategic projects.
- Increased total debt to approximately $714.52 million post-issuance.
SAN JOSE, Calif., Aug. 08, 2022 (GLOBE NEWSWIRE) -- Infinera (NASDAQ: INFN) announced today the closing of its previously announced offering of
The Company used approximately
Infinera CFO Nancy Erba said, “We are pleased with the successful completion of this transaction, an important and positive step for the company, as we continue to execute our plan. The transaction allows us to repurchase approximately
The net effect of the transactions described above, had these transactions closed on the last day of Infinera’s fiscal second quarter on June 25, 2022, is summarized below.
Summary of unaudited changes to Infinera debt profile:
| $ Millions | |||||||||
| Pre-issuance of 2028 Notes (Q2’22) | Repurchased Notes | New Notes | Post-issuance of 2028 Notes | Coupon | |||||
| 2024 Notes | ( | ||||||||
| 2027 Notes | |||||||||
| New 2028 Notes | |||||||||
Summary of unaudited and approximate changes to key balance sheet metrics and outstanding shares:
| Millions | |||
| Pre-issuance of 2028 Notes (Q2’22) | Post-issuance of 2028 Notes | Change | |
| Total cash/restricted cash | |||
| Total debt | |||
| Supplemental diluted outstanding shares1 | 285.97 | 255.60 | (30.37) |
1. The calculation of supplemental diluted outstanding shares assumes that the Company elects to settle entirely in shares all conversions of the 2024 and 2027 Notes and the portion of the conversion value of the 2028 Notes that exceeds the principal amount thereof. The pre-issuance (of 2028 Notes) supplemental diluted outstanding shares are sourced from the Q2’22 earnings press release. To the extent the price of the Company’s common stock for any relevant period exceeds
Contacts:
| Media: | Investors: | |
| Anna Vue | Amitabh Passi | |
| Tel. + 1 (916) 595-8157 | Tel: + 1 (669) 295-1489 | |
| avue@infinera.com | apassi@infinera.com |
About Infinera
Infinera is a global supplier of innovative open optical networking solutions that enable carriers, cloud operators, governments, and enterprises to scale network bandwidth, accelerate service innovation, and automate network operations. Infinera solutions deliver industry-leading economics and performance in long-haul, submarine, data center interconnect, and metro transport applications.
Infinera and the Infinera logo are registered trademarks of Infinera Corporation.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or Infinera’s future financial or operating performance and are based on current expectations, forecasts and assumptions that involve risks and uncertainties. Such forward-looking statements include, without limitation, the anticipated use of proceeds from the offering and the effect of the transaction on strengthening Infinera’s financial position and ability to achieve its target business model. Forward-looking statements can also be identified by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will,” and “would” or the negative of these words or similar terms or expressions that concern Infinera’s expectations, strategy, priorities, plans or intentions. These statements are based on information available to Infinera as of the date hereof and actual results could differ materially from those stated or implied due to risks and uncertainties.
More information on potential factors that may impact Infinera’s business are set forth in its most current quarterly and annual reports on file with the Securities and Exchange Commission (the “SEC”), including its Quarterly Report on Form 10-Q for the Fiscal Quarter ended June 25, 2022 as filed with the SEC on July 28, 2022, as well as subsequent documents and reports filed with or furnished to the SEC from time to time. These reports are available on the SEC’s website at www.sec.gov. Infinera assumes no obligation to, and does not currently intend to, update any such forward-looking statements.
FAQ
What is the purpose of Infinera's recent $373.75 million convertible notes offering?
How much of the proceeds from the 2028 notes offering will be used for debt repurchase?
What is the impact of the notes offering on Infinera's total debt?
When are the convertible senior notes due?
What is the coupon rate for the 2028 convertible senior notes?
