Ciena Corporation (CIEN) Taps Debt Market to Enhance Supply Chain Capacity and Return Value

Ciena Corporation (NYSE: CIEN ) is one of the best hot stocks to buy for June . On June 9, Ciena Corporation (NYSE:CIEN) priced a private offering of $2.5 billion 0.00% convertible senior notes due 2031. It is a significant increase from a previously announced $2 billion offering.

The company has since granted an initial purchase option to purchase an additional $375 million of notes within 13 days of issuance. The offering should close on June 11, subject to customary closing conditions.

Ciena Corporation intends to use $100 million of net proceeds from the $2.5 billion offering to pay net costs of convertible note hedge transactions. About $140 million is to be used to repurchase 0.3 million shares of common stock at $466.67 per share. On the other hand, $1.14 billion of net proceeds is to be used to repay amounts under the term loan and related fees. The remainder is to be used for general corporate purposes and investments to enhance supply chain capacity.

Ciena Corporation (NYSE:CIEN) is a global telecommunications networking equipment and Software Company that specializes in optical and packet networking. It provides the hardware and software foundational to the internet, allowing service providers, cloud companies, and governments to build, manage, and scale high-speed data networks.

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