LivePerson Plunges 6.72% on Debt Reduction Move

On August 12, 2025, LivePerson's stock experienced a significant drop of 6.72% in pre-market trading, reflecting investor concerns and market reactions to recent corporate developments.

LivePerson has announced a deleveraging transaction, entering into an agreement to exchange $341.1 million of its outstanding 2026 Convertible Senior Notes. This transaction involves $45.0 million in cash, $115.0 million of 2029 Senior Notes, and other financial instruments. The move is part of a broader strategy to reduce the company's debt burden and strengthen its financial position.

This transaction is expected to deleverage LivePerson's balance sheet by $226 million, a significant reduction that aims to enhance the company's financial stability and flexibility. The agreement includes a mix of cash payments and the issuance of new secured notes, demonstrating LivePerson's commitment to improving its financial health.

John Collins, CFO and COO of LivePerson, highlighted that this transaction marks the successful culmination of a multi-year strategy to deleverage the balance sheet. The company's efforts to reduce debt are seen as a positive step towards long-term sustainability and growth.