CIEN · Ciena Corporation

Ciena announced a $2.0 billion convertible senior notes offering due 2031, intended to refinance existing debt and fund a $140 million share repurchase. The notes will be issued in a private placement to qualified institutional buyers under Rule 144A, with an additional $300 million option. Concurrently, Ciena plans to enter convertible note hedge and warrant transactions to mitigate dilution. The proceeds also include repayment of $1.14 billion under its term loan. Separately, the company expects to amend its credit agreement to extend the revolving facility maturity to October 2030, remove credit spread adjustments, add daily SOFR as an interest rate option, and adjust margins based on leverage. The offering and amendment are cross-conditional. This refinancing reduces near-term debt maturities, provides flexibility for supply chain investments, and signals confidence in future cash flows. The hedging structure suggests management is actively managing equity exposure from the convertible feature.