Ciena Corporation (NYSE: CIEN) announced the pricing of its private offering of $2.5 billion aggregate principal amount of 0.00% convertible senior notes due 2031, according to a company statement. The offering size was increased from the previously announced $2.0 billion.

The notes will be guaranteed by Ciena's wholly-owned domestic subsidiaries that currently guarantee its 4.00% senior notes due 2030. The company granted initial purchasers an option to purchase up to an additional $375.0 million aggregate principal amount of notes within a 13-day period. The offering is expected to close on June 11, 2026.

The initial conversion rate is set at 1.3393 shares of common stock per $1,000 principal amount of notes, equivalent to an initial conversion price of approximately $746.66 per share. This represents a conversion premium of approximately 60.0% over the last reported sale price of $466.67 per share on the New York Stock Exchange on June 8, 2026.

Ciena plans to use $100.0 million of net proceeds to pay the net cost of convertible note hedge transactions and approximately $140.0 million to repurchase approximately 0.3 million shares of common stock at $466.67 per share. The company intends to use approximately $1.14 billion to repay amounts outstanding under its existing credit facility term loan. Remaining proceeds will be used for general corporate purposes, including supply chain capacity investments.

The notes will mature on September 15, 2031, unless earlier converted, redeemed or repurchased. Prior to June 15, 2031, the notes will be convertible only upon satisfaction of certain conditions. The company may redeem the notes on or after September 20, 2029, subject to certain conditions.

Ciena entered into convertible note hedge transactions and warrant transactions with initial purchasers and financial institutions. The warrant transactions have a strike price of $1,000.00 per share, representing approximately 114.3% premium to the June 8, 2026 closing price.