Why Did Adtran Stock Tumble 9% Today?

ADTRAN Holdings Inc. (ADTN) stock tumbled over 9% in premarket trading on Tuesday after the company announced plans to raise $150 million through the issuance of convertible senior notes maturing in 2030.

The announcement, which was made on Monday, after the market closed, said the offering will be conducted privately, targeting institutional investors believed to qualify under Rule 144A of the Securities Act of 1933.

On Stocktwits, retail sentiment around ADTRAN stock remained in ‘bearish’ territory. Message volume improved to ‘high’ from ‘normal’ levels in 24 hours. 

The company may also offer an additional $22.5 million in notes to the initial buyer within 13 days of the original issuance. The notes will carry semi-annual interest and are structured as unsecured senior debt. They can be converted under certain conditions, and ADTRAN may settle conversions using a mix of cash and stock, depending on its discretion.

The convertible notes will come due on September 15, 2030, unless ADTRAN repurchases, redeems, or converts them earlier. The company intends to settle the conversion's principal in cash, while any excess value may be paid in stock, cash, or a combination of both.

A portion of the funds raised will go toward entering into capped call transactions, financial instruments designed to limit stock dilution if the notes are converted. Remaining proceeds will be used to pay down outstanding loans under ADTRAN’s existing credit agreement, dated July 18, 2022.

ADTRAN stock has gained over 25% in 2025 and over 92% in the last 12 months. 

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