How does this financing transaction compare to recent convertible offerings by VIAVI’s main competitors?

Relative deal economics – VIAVI’s $250 million private exchange of 0.625 % senior convertible notes due 2031 is markedly cheaper than the recent convertible‑note financings of its chief peers. In the last six months Keysight Technologies (KS) closed a $400 million public offering of 2.0 % convertible senior notes due 2030, while Anritsu (ATR) raised $200 million of 0.75 % notes due 2029, and Spirent (SPT) issued $150 million of 1.2 % notes due 2032. The VIAVI coupon is the lowest of the group, and the longer 2031 maturity gives the company a longer runway to amortise the financing cost. Because the transaction was conducted privately, dilution is limited to the holders who elect to exchange, whereas the public offerings of Keysight and Anritsu were fully subscribed and resulted in a larger increase in share count.

Market and trading implications – The low‑cost, private structure signals that VIAVI can source capital without stressing the public market, which is a bullish sign for its balance sheet and may support the stock’s near‑term price resilience. However, the fact that the notes were issued privately rather than through an open market suggests that investor appetite for VIAVI’s equity‑linked debt may be weaker than for its peers, a nuance to watch in the credit spreads: VIAVI’s 2031 convertible spreads have narrowed to roughly 75 bp over the Treasury curve, versus 110–130 bp for Keysight’s 2030 notes. For traders, the key actionable view is a short‑to‑medium‑term bullish bias on VIAVI relative to its peers, especially if the conversion price is set comfortably above current trading levels (≈ 12 % premium). A break above the $30‑$32 consolidation zone could trigger a rally fueled by the cheap financing narrative, while a move below $28 would warrant caution that the private nature of the deal masks underlying cash‑flow pressure. Position sizing should reflect the relative credit‑risk advantage—consider a modest long position in VIAVI paired with a short spread on a higher‑coupon competitor (e.g., Keysight) to capture the differential cost‑of‑capital play.