Adtran Proposes $150 Million Convertible Senior Notes Offering

Adtran Holdings, Inc. has announced its intention to offer $150 million in convertible senior notes maturing in 2030. The offering, aimed at institutional buyers, includes an option for purchasing an additional $22.5 million in notes. These unsecured notes will pay interest semi-annually and are convertible under certain conditions, with redemptions possible under specific terms starting September 2028.

The proceeds are to fund capped call transactions and repay parts of existing credit. Capped call deals aim to reduce potential stock dilution upon note conversion, though exceeding a set cap price might still cause dilution.

The notes are not registered under the Securities Act, limiting their offer and sale to qualified buyers, with the pricing expected to solidify shortly. This offering joins complex financial transactions which reinforce Adtran's financial strategies amidst variable market conditions.