LivePerson Plunges 6.72% on Debt Reduction Move

Generated by AI AgentAinvest Pre-Market Radar
Tuesday, Aug 12, 2025 4:25 am ET1min read
Aime RobotAime Summary

- LivePerson's stock fell 6.72% pre-market after announcing a $341.1M 2026 convertible note deleveraging deal.

- The transaction replaces $45M cash and $115M 2029 secured notes to reduce debt by $226M, improving financial flexibility.

- CFO John Collins called it a multi-year strategy success, aiming to strengthen long-term stability and growth prospects.

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

, 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.

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