09:08 AM EDT, 08/14/2025 (MT Newswires) -- Viavi Solutions ( VIAV ) said Thursday it entered into agreements with certain holders of its outstanding 1.625% senior notes due 2026 and new investors under which it will issue $250 million of 0.625% senior convertible notes due 2031.

As part of the privately negotiated exchange and subscription agreements, the company said $100.9 million of new notes will be exchanged for $97.5 million of the 2026 notes and $149.1 million of new notes for cash.

Following the exchange transactions, which are expected to close Wednesday, Viavi said $152.5 million of 2026 notes will remain outstanding with terms unchanged.

The new notes will pay interest semi-annually starting on March 1 at an annual rate of 0.625% and will mature in March 2031, unless converted, redeemed or repurchased earlier, the company said.

Viavi said it will not get any cash proceeds from the exchange transactions and expects approximately $149.1 million in gross proceeds from the subscription transactions, and will use net proceeds for the repayment of a part of the 2026 notes due upon maturity.

Shares of the company were down 4.8% in recent Thursday premarket activity.