Applied Optoelectronics to Exchange Nearly $77 Million of Convertible Senior Notes Due 2026

MT Newswires Live12-19

Applied Optoelectronics (AAOI) said Thursday it entered into transactions with noteholders to exchange $76.7 million of 5.25% convertible senior notes due 2026 for a combination of convertible senior notes due 2030 and common shares.

The maker of fiber optic cables said the initial conversion rate will be about 23.1 shares per $1,000 principal amount of 2030 notes, equal to an initial conversion price of $43.31 per share, which is a 27.5% premium relative to the stock's last closing price.

The exchange offer will also include a cash component representing accrued interest on notes due 2026 and the value of any fractional shares, according to the company.

Applied Optoelectronics expects to close the offering on or about Monday with final terms of the exchanges to be disclosed at pricing.

Shares of the company were down 1.5% in recent trading.

Price: 33.48, Change: -0.49, Percent Change: -1.45

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment