Network Gear Firm Ciena Eyes $2 Billion in Convertible Bonds (1)

Network equipment supplier Ciena Corp. is planning to raise $2 billion by issuing debt that can be converted into shares, joining the ranks of companies capitalizing on the demand from a massive buildout of artificial intelligence infrastructure.

The Hanover, Maryland-based company is offering a 0% to 0.5% coupon on the bonds due in 2031, according to a term sheet reviewed by Bloomberg. The deal is being pitched with a conversion premium between 52.5% and 57.5%, the terms show.

Ciena will use the proceeds to repay existing debt and loan arrangements, repurchase as much as $140 million of its shares as ...