Viavi Solutions to Issue $500M Stock Offering with 15% Upsize Option
Viavi Solutions plans to sell approximately $500M of common stock with a 30-day underwriter option to increase by 15%, raising net proceeds to repay $450M Term Loan B. Excess proceeds will fund working capital and general corporate purposes, reducing leverage and strengthening liquidity.
1. Offering Details
Viavi Solutions is proposing an underwritten public offering of approximately $500 million of its common stock and has granted underwriters a 30-day option to purchase up to 15% additional shares at the offering price, less discounts and commissions. All shares will be sold by the company, with completion subject to market conditions and customary closing requirements.
2. Use of Proceeds
The company intends to use net proceeds to fully repay the $450 million aggregate principal amount of its Term Loan B. Any remaining funds will support working capital and general corporate purposes, enhancing operational flexibility.
3. Financial Impact and Dilution
This offering aims to eliminate the Term Loan B and reduce interest obligations, improving liquidity and capital structure. However, the increase in outstanding shares may dilute earnings per share while strengthening balance sheet metrics.