Adtran Shares Fall on $150 Million Notes Sale
By Katherine Hamilton
Adtran Holdings shares fell after the company said it planned to sell $150 million worth of convertible senior notes due in 2030.
The stock fell 11% to $9.30 on Tuesday morning. Shares are still up about 13% this year.
The offering will be for institutional buyers, and Adtran expects to grant the buyer an option to purchase up to an additional $22.5 million in notes, the Huntsville, Ala., networking company said Tuesday.
Adtran intends to use a portion of the proceeds from the offering to fund the cost of entering into capped call transactions with the notes' buyer. The transactions are expected to initially cover the number of shares that will underlie the notes. Adtran will enter additional capped call transactions if the buyer exercises its option to purchase initial notes.
The capped call transactions are expected to reduce the potential dilution of Adtran's stock upon any conversion of the notes.
Any remaining proceeds beyond those used for the capped call transactions will go towards repaying outstanding borrowings under a 2022 credit agreement.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
September 16, 2025 10:12 ET (14:12 GMT)
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