Adtran tumbles after unveiling $150 mln convertible bonds sale

Adtran Holdings

16/09/2025 20:57

** Shares of networking and communications provider Adtran Holdings ADTN.O down 15.9% at $8.78 on Tues ahead of planned capital raise

** ADTN shares on course for biggest one-day pct drop since Aug 6, 2024; about 7.9 mln shares have exchanged hands, nearly 9x their 10-DMA volume, per LSEG

** Huntsville, Alabama-based firm late Mon announced 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

** Through Mon, co had ~$836 mln market cap

** With move on the session, shares up ~5% YTD vs Nasdaq's .IXIC ~16% advance

** 4 of 8 analysts rate ADTN "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))