Ciena Corporation plans to offer $2.0 billion in convertible senior notes through a private offering. These notes are scheduled to mature in 2031. Initial purchasers hold an option to buy an additional $300 million in notes. This maneuver aims to restructure the company's debt and manage its capital structure.
The company will use approximately $1.14 billion of the net proceeds to repay an existing term loan. Ciena also intends to allocate up to $140 million for common stock repurchases.
Funds will cover convertible note hedge transactions to mitigate potential shareholder dilution. Remaining capital will support general corporate purposes, including investments in supply chain capacity.