LivePerson Announces Debt Deleveraging Transaction

LivePerson has agreed to exchange $341.1 million of its outstanding 2026 Convertible Senior Notes for $45.0 million in cash, $115.0 million of 2029 Senior Subordinated Secured Notes, and common and preferred equity. The deal aims to deleverage the balance sheet, capture $181 million of debt discount, and extend LivePerson's runway through 2029.

LivePerson, Inc. (NASDAQ: LPSN) has announced a significant transaction aimed at deleveraging its balance sheet and extending its financial runway. The company has entered into a binding agreement to exchange $341.1 million of its outstanding 2026 Convertible Senior Notes for a mix of consideration, including $45.0 million in cash, $115.0 million of 2029 Senior Subordinated Secured Notes, and common and preferred equity [1].

The exchange, subject to customary closing conditions and expected to occur by the end of September, will capture $181 million of debt discount, accrue to shareholders, and deleverage the balance sheet by $226 million. This move is part of LivePerson's multi-year strategy to extend its runway through 2029 and shift a greater proportion of enterprise value to shareholders [1].

The New Secured Notes, guaranteed by certain subsidiaries and secured by a second-priority lien on substantially all assets of the company and guarantors, will accrue interest at a rate of 10.0% per annum and mature on December 15, 2029. The shares of Series B Preferred Stock will be convertible into a fixed number of shares of common stock, with regular dividends accruing at a rate of 15.0% and increasing to 20.0% if any shares remain outstanding on the first anniversary of the closing date [1].

LivePerson's CFO and COO, John Collins, stated, "Today's transaction represents the successful culmination of our multi-year strategy to deleverage the balance sheet. This exchange captures $181 million of debt discount that accretes to shareholders, deleverages the balance sheet by $226 million, and extends LivePerson's runway through 2029. In sum, we believe this exchange shifts a greater proportion of enterprise value to shareholders, and provides the company with time to execute its strategy, reinforcing its position as a long-term strategic partner to customers, and creating runway to further enhance value for shareholders" [1].

Additional details regarding the transaction will be filed in a Current Report on Form 8-K with the Securities and Exchange Commission [1].

References:
[1] https://www.prnewswire.com/news-releases/liveperson-announces-deleveraging-transaction-302526834.html