Ciena unveils $2 bln convertible debt deal; shares up

Ciena

08/06/2026 13:12

** Networking technology firm Ciena's CIEN.N shares up 0.3% before the bell on Mon to $489.50 as it seeks capital raise
** Hanover, Maryland-based CIEN privately offering $2 bln convertible bonds (CBs) due Sept 15, 2031
** 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 some proceeds to pay cost of hedge transactions for the CBs, and repurchase up to $140 mln of its shares
** CIEN has $69 bln market cap
** Stock has fallen past three sessions losing 22% amid broader selloff in tech, but still up ~109% YTD through Fri
** CIEN early Thurs posted Q2 rev of $1.57 bln, up 40% yr/yr, and adj EPS of $1.64, topping LSEG estimates of $1.51 bln/$1.46, citing strong AI-driven demand
** 13 of 20 analysts rate the stock "strong buy" or "buy", 7 "hold"; median PT of $603.50 up from $388.50 a month ago
     

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