Company: LPSN
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001102993-25-000108
Chunk: 104

Company: LIVEPERSON INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 104
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 addition, a corresponding portion of the 2026 capped calls were terminated in connection following the transactions in 2024 as required by their terms for no consideration.

20

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)

The 2026 Notes were classified as long-term liabilities in the condensed consolidated balance sheets as of June 30, 2025. As of June 30, 2025, the aggregate principal amount of the 2026 Notes was $361.2 million and the carrying amount of the 2026 Notes was $359.2 million. The remaining term over which the 2026 Notes’ debt issuance costs will be amortized is 1.4 years at an effective interest rate of 0.40% for the three months ended June 30, 2025.On August 11, 2025, the Company entered into a privately negotiated exchange agreement (the “Exchange Agreement”) with holders (the “Noteholders”) of approximately $341.1 million aggregate principal amount of the 2026 Notes relating to the exchange (the “Exchange”) of such 2026 Notes held by the Noteholders for (i) an aggregate payment of $45.0 million in cash, (ii) $115.0 million of aggregate principal amount of the Company’s 10.0% Second Lien Senior Subordinated Secured Notes due 2029, (iii) shares of the Company’s common stock, (such shares, the “Common Equity Shares”) and (iv) shares of Series B Fixed Rate Convertible Perpetual Preferred Stock (“Series B Preferred Stock”). The aggregate number of Common Equity Shares and shares of common stock into which the Series B Preferred Stock are convertible (such shares, the “Conversion Shares”), will equal to 39% of the fully diluted Common Stock as of the closing date of the Exchange (the “Closing Date”). The total number of Common Equity Shares, shares of Series B Preferred Stock and Conversion Shares issuable to the Noteholders will be determined on or prior to the Closing Date.  The Closing Date is expected to occur prior to September 30, 2025, subject to satisfaction of the closing conditions set forth in the Exchange Agreement, including the absence of a material adverse event, the absence of any default or event of default under the indentures governing the 2026 Notes and the Company’s First Lien Convertible Senior Notes due 2029, the accuracy of the Specified Representations (as defined in