Adtran drops after $150 mln convertible bonds sale unveil

Adtran Holdings

15/09/2025 22:32

** Shares of networking and communications provider Adtran Holdings ADTN.O down 10% in extended trading to $9.40 after planned capital raise news

** Huntsville, Alabama-based firm announces private offering of $150 mln 5-yr convertible bonds

** It intends to use net offering proceeds to repay a portion of outstanding borrowings under its credit agreement dated July 18, 2022

** Co also plans to use proceeds to pay cost of capped calls, derivative transactions employed to help mitigate dilution

** Based on ~80 mln shares outstanding, co has $835 mln market cap

** Shares on Mon ended up 3.3% at $10.44, up ~25% YTD

** Of 8 analysts covering the stock, 4 rate "strong buy" or "buy" and 4 rate "hold"; median PT of $12 unchanged over the past three months, according to LSEG

 (Lance Tupper is a Reuters market analyst. The views expressed are his own)

 ((lance.tupper@tr.com 1-646-279-6380))