Viavi Solutions Raises $557.2M in Equity Offering, Repays Term Loan
VIAV has more than doubled off its 52-week low of $8.87 on elevated volume (2.4× avg).
Summary
VIAVI Solutions has finalized its public equity offering, raising approximately $557.2 million net, including the full exercise of the underwriters' over-allotment option. The shares were priced at $45.00 each. This follows the company's initial announcement of a $500 million offering on May 19th and the subsequent 8-K filing on May 21st confirming the completion. The proceeds will be used to repay $450 million of its 7-year term loan facility, reducing debt but also resulting in dilution for existing shareholders as the offering was priced at a discount to the current market price.
At the time of this announcement, VIAV was trading at $47.83 on NASDAQ in the Technology sector, with a market capitalization of approximately $11.3B. The 52-week trading range was $8.87 to $60.43. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Wiseek News.