Juniper Networks Announces Expiration and Tender Results of Cash Tender Offer for Two Series of Senior Notes

Rhea-AI Summary

Juniper Networks (JNPR) announced the expiration of its cash tender offer for its outstanding Senior Notes, with substantial participation: 46.75% of 4.500% Notes and 47.32% of 4.350% Notes tendered. The Offer, which expired on December 9, 2020, will result in payments made on December 10 and 14, 2020, while remaining notes will be redeemed on January 9, 2021. Total consideration for the tendered notes is approximately $434 million, funded by prior note sales and existing cash, indicating Juniper's strategic financial management.

Positive

• 46.75% of 4.500% Notes and 47.32% of 4.350% Notes successfully tendered, indicating strong investor interest.
• Total consideration for tendered notes amounts to approximately $434 million, showcasing effective capital management.

Negative

• Only 46.75% and 47.32% of the respective notes were tendered, which may indicate lower investor confidence.

SUNNYVALE, Calif., Dec. 09, 2020 (GLOBE NEWSWIRE) -- Juniper Networks, Inc. (NYSE: JNPR)(“Juniper”), a leader in secure, AI-driven networks, announced today the expiration and tender results of its previously announced cash tender offer (the “Offer”) for any and all of its outstanding 4.500% Senior Notes due 2024 (CUSIP/ISIN No. 48203R AG9/US48203RAG92, the “4.500% Notes”) and any and all of its outstanding 4.350% Senior Notes due 2025 (CUSIP/ISIN No. 48203R AJ3/US48203RAJ32, the “4.350% Notes,” and together with the 4.500% Notes, the “Notes”). The Offer expired at 5:00 p.m., New York City time, on Wednesday, December 9, 2020 (the “Expiration Time”). As of the Expiration Time, $233,726,000 or 46.75% of the $500,000,000 aggregate principal amount of the 4.500% Notes and $141,964,000 or 47.32% of the $300,000,000 aggregate principal amount of the 4.350% Notes had been validly tendered and not withdrawn in the Offer, which amounts exclude $1,321,000 aggregate principal amount of the 4.500% Notes and $4,063,000 aggregate principal amount of the 4.350% Notes that, in each case, remain subject to guaranteed delivery procedures. Juniper will accept for purchase all the Notes validly tendered and delivered (and not validly withdrawn) in the Offer at or prior to the Expiration Time, subject to the satisfaction of the Offer conditions. Payment for the Notes purchased pursuant to the Offer is intended to be made on December 10, 2020 (the “Settlement Date”) or, in the case of the Notes that remain subject to guaranteed delivery procedures, December 14, 2020.

The consideration to be paid under the Offer will be $1,128.39 per $1,000 principal amount of the 4.500% Notes and $1,160.69 per $1,000 principal amount of the 4.350% Notes, plus accrued and unpaid interest to, but not including, the Settlement Date. Payment of accrued interest on the Notes validly tendered through guaranteed delivery procedures and accepted for purchase will only be made to, but not including, the Settlement Date. The total Offer consideration of $433,995,562.13, which amount includes accrued and unpaid interest but excludes the Notes that remain subject to guaranteed delivery procedures, will be funded from the net proceeds from the previously announced issuance and sale by Juniper of its 1.200% Senior Notes due 2025 and 2.000% Senior Notes due 2030 and cash on hand.

Juniper intends to redeem all the Notes that have not been tendered in the Offer (the “Redeemed Notes”) on the anticipated redemption date of January 9, 2021. Payment of accrued interest on the Redeemed Notes will only be made to, but not including, January 9, 2021. Payment for the Redeemed Notes is intended to be made on January 11, 2021.

The Offer was made pursuant to Juniper’s Offer to Purchase dated December 3, 2020. Barclays, J.P. Morgan and Wells Fargo Securities acted as Dealer Managers for the Offer. This press release is neither an offer to purchase nor a solicitation to buy any of the Notes nor is it a solicitation for acceptance of the Offer and does not constitute a notice of redemption for the 4.500% Notes or 4.350% Notes.

Safe Harbor Statement

This news release contains forward-looking statements, including statements regarding our tender offer and intent to redeem any remaining Notes. We have based these forward-looking statements on our current assumptions, expectations and projections about future events. We use words like “intend,” “will,” and similar expressions to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially from those suggested by the forward-looking statements including general economic and political conditions globally or regionally; and those additional risks and factors discussed in reports filed with the SEC by us from time to time, including those discussed under the heading “Risk Factors” in our most recently filed reports on Forms 10-K and 10-Q.

About Juniper Networks

Juniper Networks challenges the inherent complexity that comes with networking in the multicloud era. We do this with products, solutions and services that transform the way people connect, work and live. We simplify the process of transitioning to a secure and automated multicloud environment to enable secure, AI-driven networks that connect the world.

Juniper Networks, the Juniper Networks logo and Junos are registered trademarks of Juniper Networks, Inc. and/or its affiliates in the United States and other countries. Other names may be trademarks of their respective owners.

Investor Relations:
Jess Lubert
Juniper Networks
(408) 936-3734
jlubert@juniper.net

Media Relations:
Leslie Moore
Juniper Networks
(408) 936-5767
llmoore@juniper.net

FAQ

What were the results of Juniper Networks' cash tender offer on December 9, 2020?

Juniper Networks successfully tendered 46.75% of its 4.500% Notes and 47.32% of its 4.350% Notes.

When will Juniper Networks make payments for the tendered notes?

Payments for the tendered notes are scheduled for December 10 and December 14, 2020.

What is the total consideration amount for the notes tendered by Juniper Networks?

The total consideration for the tendered notes is approximately $434 million.

What will happen to the notes that were not tendered in the cash offer?

Juniper Networks plans to redeem the notes that were not tendered on January 9, 2021.