Ciena steadies after boosted $2.5 bln convertible bond sale

Ciena

09/06/2026 14:22

** Networking technology firm Ciena's CIEN.N shares down 0.3% at $465.50 premarket on Tues after securing more capital than targeted
** Hanover, Maryland-based CIEN late Mon announced pricing private offering of $2.5 bln 0% convertible bonds (CBs) due Sept 15, 2031
** Initial conversion price of $746.66 is 60% above stock's last close of $466.67
** CIEN shares fell for fourth straight session on Mon, finishing down 4.4% after co unveiled $2 bln offering
** Co intends to use approx $1.14 bln of net offering proceeds to repay term loan, remainder for general purposes, including boosting supply chain capacity
** It also plans to use $100 mln to pay cost of hedge transactions for the CBs, and repurchase up to $140 mln of its shares
** Through Mon, CIEN stock has doubled YTD. It closed at $72.60 a year ago
** Avg rating of 19 analysts is "buy"; median PT of $603.50 up from $388.50 a month ago, per latest LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))