Enters into agreement to exchange $146 million of its outstanding 2026 Convertible
Senior Notes for $100 million of 2029
Convertible Senior Secured Notes
Receives commitment for $100 million of new capital in the form of 2029
Convertible Senior Secured Notes to facilitate further
deleveraging
NEW
YORK, May 13, 2024 /PRNewswire/ --
LivePerson, Inc. (Nasdaq: LPSN) ("LivePerson" the "Company",
"we" or "us"), the enterprise leader in digital customer
conversations, today announced that its largest existing notes
investor, Lynrock Lake Master Fund LP ("Lynrock"), has entered into
a binding agreement to exchange (the "Exchange") its existing
approximately $146 million principal
amount of Senior Convertible Notes due 2026 for $100 million of new Senior Secured Convertible
Notes due 2029 (the "New Notes"). In addition, Lynrock has agreed
to provide the Company with $100
million of new capital in the form of additional New Notes,
with $50 million to be purchased
concurrently with the Exchange and another $50 million to be purchased within six months of
the Exchange upon the Company's request.
"Today's transaction significantly improves our capital
structure by enabling us to capture some of the discounted current
market price of our 2026 Convertible Senior Notes, extend our debt
maturity schedule, and raise new capital to facilitate further
deleveraging," said John Collins,
CFO and COO. "With a stronger balance sheet, LivePerson is well
positioned to meet the needs of our customers and partners for the
long run and to accelerate value creation for shareholders. We
appreciate Lynrock's support and continued confidence in our
strategy and vision."
The New Notes will be secured and guaranteed by certain of the
Company's subsidiaries on a senior secured basis. Concurrently with
the Exchange, Lynrock will also be issued 10-year warrants
exercisable for 11% of the Company's common stock, calculated on a
fully diluted basis, with a strike price of $0.75 per share. The Exchange and purchase of New
Notes are subject to customary closing conditions and are expected
to occur by the end of May.
Additional details with respect to the purchase and exchange
agreement and the new notes will be filed today in an 8-K with the
Securities and Exchange Commission.
About LivePerson
LivePerson (NASDAQ: LPSN) is the enterprise leader in digital
customer conversations. The world's leading brands — including
HSBC, Chipotle, and Virgin Media — use our award-winning
Conversational Cloud platform to connect with millions of
consumers. We power nearly a billion conversational interactions
every month, providing a uniquely rich data set and AI-powered
solutions to accelerate contact center transformation, supercharge
agent productivity, and deliver more personalized customer
experiences. Fast Company named us the #1 Most Innovative AI
Company in the world. To talk with us or our AI, please visit
liveperson.com.
Forward-Looking Statements
Statements in this press release regarding LivePerson that
are not historical facts are forward-looking statements and are
being made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements, including statements regarding the anticipated exchange
and purchases and their benefits to the Company, are subject to
risks and uncertainties, and actual events or results may differ
materially from our expectations. Some of the factors that could
cause events or results to differ from our expectations include,
without limitation, our ability to execute on and deliver our
current business and product plans and goals, and the other factors
described in the "Risk Factors" sections of the Company's Annual
Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on
March 4, 2024 and the Company's
Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, filed with the SEC on
May 10, 2024. Readers are cautioned
not to place undue reliance on these forward-looking statements,
which speak only as of their dates.
Investor Relations Contact
ir-lp@liveperson.com
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SOURCE LivePerson, Inc.