ADTRAN (US:ADTN) Benzingaยท2025-09-16 07:53Core Viewpoint - Adtran Holdings Inc. announced a $150 million convertible senior notes offering, leading to a 9.96% drop in share price to $9.40 in after-hours trading, despite a 3.26% increase to $10.44 during regular trading hours [1]. Notes Structure And Terms - The company plans to offer convertible notes due in 2030 through a private placement to qualified institutional buyers, with an option for initial buyers to purchase an additional $22.5 million in notes [2]. Redemption, Capital Use - The notes will mature on September 15, 2030, with interest paid semi-annually. The company can redeem the notes starting September 20, 2028, if the stock exceeds 130% of the conversion price. Proceeds will be used for capped call transactions and to repay existing credit agreement borrowings from July 2022 [3][4]. Market Impact Concerns - Adtran plans to enter into capped call transactions to minimize dilution when the notes are converted. However, if the stock price exceeds certain thresholds, this could still lead to dilution or additional cash payment requirements [5]. Historical Performance - In 2025, Adtran's stock reached a high of $11.83 and a low of $7.18, reflecting a 25.33% gain for the year. The company has an annual price range of $5.26 to $12.44, a market capitalization of $835.74 million, and an average trading volume of 961,010 shares [6]. Stock Rankings - Adtran is rated with strong momentum at 88.99 and moderate growth at 11.57, indicating an uptick in price trends across short, medium, and long-term periods [7].