Viavi Solutions Strengthens Financial Position through Strategic Debt Exchange and Stock Issuance

Viavi Solutions Executes Strategic Debt Exchange to Strengthen Financial Position

Viavi Solutions Inc. announces a significant development in its financial strategy with the execution of privately negotiated agreements to exchange $103.463 million of its 1.625% Convertible Senior Notes due in 2026 for approximately 7.87 million shares of common stock, priced at $17.88 each. This transaction, expected to close by December 22, 2025, supports Viavi's ongoing efforts to optimize its capital structure and reduce outstanding debt. Following the exchange, around $49.037 million of these notes will remain on the company’s balance sheet, which indicates a strategic move towards enhancing financial flexibility.

The debt exchange is part of Viavi's broader initiative to prepay at least $100 million of its total $600 million Term Loan Credit Facility, which was established in October 2025. By reducing its debt obligations, Viavi aims to strengthen its financial stability and position itself for future growth opportunities, especially in the competitive landscape of network testing and monitoring solutions. This initiative reflects the company's commitment to maintaining a robust balance sheet while navigating the evolving demands of its diverse markets, including telecommunications, cloud, and military applications.

Viavi Solutions is not only focusing on financial maneuvers but also on its core competencies as a global provider of network test, monitoring, and assurance solutions. The company continues to leverage its expertise in light management technologies across various industries, ensuring it remains a leader in these critical sectors. As the company progresses with its strategic plans, it underscores the importance of adapting to market dynamics while maintaining a strong operational foundation.

In addition to the debt exchange, Viavi notes that the shares involved in this transaction have not been registered under the Securities Act, limiting their resale without proper exemptions. The participants in this transaction primarily consist of institutional accredited investors and qualified institutional buyers, indicating a selective engagement with market actors that align with Viavi's strategic goals. This move not only reflects Viavi's proactive financial management but also its alignment with regulatory frameworks as it navigates this complex financial landscape.