VIAVI Announces Closing of Notes Offering

Rhea-AI Summary

Viavi Solutions Inc. (NASDAQ: VIAV) has successfully closed a private offering of $400 million in senior unsecured notes with a 3.750% interest rate due in 2029. The net proceeds are estimated at $393 million after expenses and will be used for general corporate purposes, including reducing existing debt. CEO Oleg Khaykin highlighted that this issuance optimizes Viavi's capital structure and provides financial flexibility for future growth. The notes will not be registered under the Securities Act and cannot be sold in the U.S. without registration.

Positive

• Successfully closed a $400 million offering of senior unsecured notes.
• Net proceeds of approximately $393 million will help optimize capital structure.
• Provides financial flexibility to execute growth objectives.

Negative

• None.

SCOTTSDALE, Ariz., Sept. 29, 2021 /PRNewswire/ -- (NASDAQ: VIAV) Viavi Solutions Inc. ("VIAVI" or the "Company") today announced the closing of its offering of $400 million aggregate principal amount of 3.750% senior unsecured notes due 2029 (the "Notes") in a private offering to qualified institutional buyers pursuant to Rule 144A and to non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act of 1933, as amended (the "Securities Act").  The Company estimates that the net proceeds from the offering of Notes will be approximately $393 million, after deducting the initial purchasers' discounts and commissions and estimated offering expenses payable by the Company.

"We are pleased with the successful issuance of our first high yield notes at an attractive rate.  This completes an important step in optimizing our capital structure and we expect will create the financial flexibility to allow us to execute our growth objectives," said Oleg Khaykin, VIAVI's President and Chief Executive Officer.

The net proceeds of the Notes issuance will be used for general corporate purposes, including to replenish funds previously used to retire indebtedness.  Assuming current stock price levels, after the completion of the previously announced repurchase to offset the shares issued to retire the convertible notes, the impact to non-GAAP quarterly earnings per share is expected to be immaterial.

The Notes have not been and are not expected to be registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful. Offers of the Notes were made only by means of a private offering memorandum.

About VIAVI Solutions
VIAVI (NASDAQ: VIAV) is a global provider of network test, monitoring and assurance solutions for communications service providers, enterprises, network equipment manufacturers, government and avionics. We help these customers harness the power of instruments, automation, intelligence and virtualization to Command the network. VIAVI is also a leader in light management solutions for 3D sensing, anti-counterfeiting, consumer electronics, industrial, automotive, and defense applications.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include statements regarding the Company's current expectations regarding the transactions described in this press release and the anticipated use of proceeds and financial impacts therefrom, and can be identified by the fact that they do not relate strictly to historical or current facts. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. For more information on these risks, please refer to the "Risk Factors" section included in the Company's Annual Report on Form 10-K filed August 23, 2021, which was filed with the Securities and Exchange Commission. The forward-looking statements contained in this press release are made as of the date thereof and the Company assumes no obligation to update such statements.

Investors Contact:    Bill Ong, 408-404-4512; bill.ong@viavisolutions.com

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SOURCE VIAVI Financials

FAQ

What are the details of Viavi Solutions' recent notes offering?

Viavi Solutions closed a $400 million offering of 3.750% senior unsecured notes due in 2029, with net proceeds estimated at $393 million.

How will Viavi Solutions use the proceeds from the notes offering?

The proceeds will be utilized for general corporate purposes, including replenishing funds used to retire existing debt.

What is the expected impact of the notes offering on Viavi's earnings?

The impact to non-GAAP quarterly earnings per share is expected to be immaterial, assuming current stock prices.

Are the notes issued by Viavi registered with the SEC?

No, the notes have not been registered under the Securities Act and cannot be sold in the U.S. without registration.

Who made statements regarding the notes offering for Viavi Solutions?

CEO Oleg Khaykin commented on the successful issuance and its implications for the company's growth.