Washington, D.C. 20549
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Emerging growth company. ☐
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Item 1.01 Entry into a Material Definitive Agreement.
On August 20, 2025, in connection with the consummation of previously announced private transactions, Viavi Solutions Inc. (the
“Company”) issued $250 million aggregate principal amount of its 0.625% Senior Convertible Notes due 2031 (the “New Notes”) under an Indenture, dated August 20, 2025 (the “Indenture”), between the Company and U.S. Bank Trust Company, National
Association, as trustee.
The Company issued approximately $100.9 million aggregate principal amount of New Notes in exchange for approximately $97.5 million
aggregate principal amount of its 1.625% Senior Convertible Notes due 2026 (the “2026 Notes”) pursuant to privately negotiated agreements entered into with certain holders of 2026 Notes (the “Exchange Transactions”). The Company also issued and
sold approximately $149.1 million aggregate principal amount of New Notes for cash pursuant to privately negotiated agreements (the “Subscription Transactions” and, together with the Exchange Transactions, the “Transactions”).
The New Notes were offered, issued and sold in the Transactions to investors who represented that they are institutional “accredited
investors” within the meaning of Rule 501 of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”), and “qualified institutional buyers” as defined in Rule 144A promulgated under the Securities Act in reliance on the
exemption from registration provided by Section 4(a)(2) of the Securities Act. Any shares of the Company’s common stock that may be issued upon conversion of the New Notes will be issued in reliance upon Section 3(a)(9) of the Securities Act as
involving an exchange by the Company exclusively with its security holders. The offer and sale of the New Notes have not been registered under the Securities Act, or any state securities laws, and unless so registered, the New Notes may not be
offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.
In exchange for issuing New Notes pursuant to the Exchange Transactions, the Company received and cancelled the exchanged 2026 Notes.
The Company received gross cash proceeds from the Subscription Transactions of approximately $149.1 million, excluding fees and expenses payable by the Company in connection with the Transactions. The Company expects to use the net proceeds from
the Subscription Transactions to repay a portion of the 2026 Notes upon maturity.
The New Notes will mature on March 1, 2031, unless earlier converted, redeemed or repurchased. The New Notes are the Company’s
general senior unsecured obligations and rank equal in right of payment with all of the Company’s existing and future unsecured, unsubordinated indebtedness, including the outstanding 2026 Notes that were not exchanged for New Notes in the
Exchange Transactions, and senior in right of payment to any indebtedness that is contractually subordinated to the New Notes.
The Company will pay interest on the New Notes at an annual rate of 0.625% payable in cash semiannually in arrears on March 1 and
September 1 of each year, beginning March 1, 2026. The holders of the New Notes may convert the New Notes into cash and shares of the Company’s common stock, if any, based upon an initial conversion rate of 72.5295 shares of the Company’s common
stock per $1,000 principal amount of New Notes (which is equal to an initial conversion price of approximately $13.79 per share of the Company’s common stock, representing an approximately 25% conversion premium based on the closing price of
$11.03 per share of the Company’s common stock on August 13, 2025), subject to adjustment as provided for in the Indenture. Initially, a maximum of 22,665,450 shares of the Company’s common stock may be issued upon conversion of the New Notes
based on the maximum conversion rate for the New Notes, which is subject to customary anti-dilution adjustments.
The New Notes may be converted at any time on or prior to the close of business on the business day immediately preceding December 1,
2030, in multiples of $1,000 principal amount, at the option of the holder only under the following circumstances: (i) on any date during any calendar quarter beginning after December 31, 2025 (and only during such calendar quarter) if the
closing price of the Company’s common stock was more than 130% of the then current conversion price for at least 20 trading days (whether or not consecutive) during the 30 consecutive trading-day period ending on the last trading day of the
previous calendar quarter, (ii) upon the occurrence of specified corporate events, (iii) if the Company is party to a specified transaction, a fundamental change or a make-whole fundamental change (each as defined in the Indenture), (iv) during
the five consecutive business-day period immediately following any 10 consecutive trading-day period in in which the trading price per $1,000 principal amount of the New Notes for each day during such 10 consecutive trading-day period was less
than 98% of the product of the closing sale price of the Company’s common stock and the applicable conversion rate on such date, or (v) if the Company calls any or all of the New Notes for redemption (solely with respect to New Notes called for
redemption). During the periods from, and including, December 1, 2030 until the close of business on the business day immediately preceding the maturity date, holders of the New Notes may convert the New Notes regardless of the circumstances
described in the immediately preceding sentence.
Holders of the New Notes may require the Company to repurchase for cash all or a portion of the New Notes upon the occurrence of a
fundamental change (as defined in the Indenture) at a repurchase price equal to 100% of the principal amount of the New Notes to be repurchased, plus accrued and unpaid interest up to, but excluding, the date of repurchase. In addition, if
certain make-whole fundamental changes occur or the Company calls all or a portion of the New Notes for redemption, the Company will, in certain circumstances, increase the conversion rate for any New Notes converted in connection with such
make-whole fundamental change or redemption.
The Company may not redeem the New Notes prior to September 6, 2028. The Company may redeem for cash all or part of the New Notes, at
its option, on or after September 6, 2028 if the closing sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive
trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides the redemption notice in accordance with the Indenture. If the Company
redeems less than all the outstanding New Notes, at least $75 million aggregate principal amount of New Notes must be outstanding and not subject to redemption as of the relevant redemption notice date.
The Indenture provides for customary events of default, including payment defaults, breaches of covenants, failure to pay certain
judgments and certain events of bankruptcy, insolvency and reorganization. If an event of default occurs and is continuing, the principal amount of the New Notes, plus accrued and unpaid interest, if any, may be declared immediately due and
payable, subject to certain conditions set forth in the Indenture. These amounts automatically become due and payable if an event of default relating to certain events of bankruptcy, insolvency or reorganization occurs.
Item 3.02 Unregistered Sales of Equity Securities.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.