Infinera Completes $373.75 Million Convertible Senior Notes Offering and Repurchases Approximately $300 Million of 2024 Convertible Notes

SAN JOSE, Calif., Aug. 08, 2022 (GLOBE NEWSWIRE) -- Infinera (NASDAQ: INFN) announced today the closing of its previously announced offering of 3.75% convertible senior notes due 2028 (the “2028 Notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). After the exercise in full of the option to purchase additional 2028 Notes, the aggregate principal amount of 2028 Notes issued in the offering was $373.75 million, with the Company receiving net proceeds (after fees and other expenses) of approximately $362.50 million.

The Company used approximately $283.62 million of the net proceeds from this offering to repurchase, including the payment of accrued and unpaid interest, approximately $300 million in aggregate principal amount of its 2.125% Convertible Senior Notes due 2024 in privately negotiated transactions concurrently with the offering. The company intends to use the remaining net proceeds from the 2028 Notes offering for general corporate purposes, including working capital and to fund growth opportunities and potential strategic projects.

Infinera CFO Nancy Erba said, “We are pleased with the successful completion of this transaction, an important and positive step for the company, as we continue to execute our plan. The transaction allows us to repurchase approximately $300 million of our 2024 convertible notes and strengthen our financial position, while remaining focused on driving our 8x4x1 strategy and achieving our target business model.”

The net effect of the transactions described above, had these transactions closed on the last day of Infinera’s fiscal second quarter on June 25, 2022, is summarized below.

Summary of unaudited changes to Infinera debt profile:

	$ Millions
	Pre-issuance of 2028 Notes (Q2’22)		Repurchased Notes		New Notes		Post-issuance of 2028 Notes		Coupon
2024 Notes	$402.50		($299.85)				$102.65		2.125%
2027 Notes	$200.00						$200.00		2.500%
New 2028 Notes					$373.75		$373.75		3.750%

Summary of unaudited and approximate changes to key balance sheet metrics and outstanding shares: