August 2022
Case Study

Infinera
Corporation

Infinera is a manufacturer of optical communications equipment, using photonic integrated circuits to create digital optical networks marketed to carriers, data service providers, and cable operators. Infinera was acquired by Nokia in 2025

Transaction Terms
Offering Size
$373.75MM ($325MM Base + $48.75MM Greenshoe)
Security
3.75% Convertible Senior Notes
Maturity
2028 (6 Years)
Use of Proceeds
Repurchase $300MM principal amount of 2.125% convertible senior notes due 2024; general corporate purposes
Execution
144A, wall-crossed, one-day marketed
5.5points
Discount to par;
repurchase of existing CB
~75%
Of existing issue retired
+$80MM
Incremental proceeds from
upsizing and greenshoe exercise
Situation Overview

Proactive maturity
management

In September 2018, Infinera issued a $402.5MM convertible bond, hedged with a freestanding capped call, to finance an acquisition. In March 2020, INFN returned to the convertible market for an additional $200MM raise for general corporate purposes.

With the 2024s' maturity approaching, the Company decided to proactively repurchase a material portion of the bonds in a liability management exercise, while leaving the existing capped call in place, and hired HudsonWest to help manage the process.

HudsonWest’s Role

Helping coordinate a 144A new issue and
concurrent repurchase

01
Refinancing Strategy

Working closely with senior management, Infinera's investor relations team and the Board, HudsonWest evaluated refinancing strategies for the 2024s and the capped call. Infinera decided on a 144A new issue and repurchase strategy, while leaving the capped call in place.

02
Wall-Cross Execution

In partnership with Infinera's underwriting bank, HudsonWest conducted a wall-cross process of the top 2024 holders, negotiating the terms of the new issue and the repurchase.

03
Discount to Par Repurchase

Infinera retired a total of $300MM of the 2024s at a 5.5-point discount to par, extending their maturity to 2028 — a highly attractive outcome for the Company.

04
Upsized and Greenshoe

The deal was upsized from its $275MM launch size, and the greenshoe was fully exercised, thereby raising the Company an incremental ~$80MM in proceeds.

Other Infinera Transactions
June 2023
$100MM Reopening of 2028s + $83.9MM Concurrent Repurchase
View Case Study →
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