LivePerson Concludes Major Debt Deleveraging Deal to Enhance Financial Stability

LivePerson Completes Key Deleveraging Initiative

Date: August 11, 2025
Location: New York

In a significant move aimed at enhancing its financial stability, LivePerson, Inc. (NASDAQ: LPSN), a prominent provider of enterprise conversational AI, announced today a major deleveraging transaction concerning its outstanding debt. This agreement involves a total of $341.1 million of its 2026 Convertible Senior Notes, marking a crucial step in the company’s strategic plan to streamline its balance sheet and extend its financial runway.

The transaction entails the exchange of these notes for a combination of cash, new secured debt, and equity stock. Specifically, LivePerson will pay $45 million in cash, offer $115 million in 10.0% Senior Subordinated Secured Notes due in 2029, and issue shares of Series B Fixed Rate Convertible Perpetual Preferred Stock along with common equity shares. This exchange signifies a potential shift in ownership structure, with new securities representing approximately 39% of LivePerson's fully diluted common stock post-transaction.

John Collins, the Chief Financial Officer and Chief Operating Officer, stated, "Today's transaction marks the culmination of our multi-year strategy to deleverage the balance sheet. It realizes a $181 million debt discount for our shareholders and reduces total liabilities by $226 million, thereby providing us with an extended runway through 2029. This exchange is expected to enhance long-term shareholder value and further solidify our role as a strategic partner to our clients."

As part of this restructuring, the new Secured Notes will carry a 10% annual interest, maturing on December 15, 2029. Additionally, the Series B Preferred Stock will be convertible into common stock, contingent upon shareholder approval for an increase in the company's authorized share capital. The proposal to amend the company's charter will be voted on by shareholders at a future special meeting, with executive officers expressing their support. If not approved, the Series B Preferred Stock will remain outstanding, accruing dividends at a rate of 15% and potentially increasing to 20% if still outstanding by the first anniversary of the closing date.

The transaction is subject to standard closing conditions and is expected to finalize by the end of September. LivePerson’s move to reduce its debt burden demonstrates a commitment to financial prudence and ensures that the company remains on track to implement its strategic initiatives effectively.

For investors and stakeholders, the implications of this deleveraging move are bundled with the prospect of improved corporate governance and transparency. LivePerson plans to file a proxy statement with the SEC, urging investors to carefully review this material as it contains pivotal information regarding the charter amendment necessary for the proposed changes.

This significant reshaping of LivePerson's financial landscape comes as the company continues to expand its footprint in the digital customer engagement space, bolstering partnerships with major brands like HSBC and Virgin Media. LivePerson's award-winning Conversational Cloud platforms are designed to facilitate smoother customer interactions, aiming to improve agent productivity and deliver tailored experiences.

In summary, LivePerson's recent debt restructuring is not just a financial maneuver but a strategic realignment to optimize shareholder value and pave the way for longer-term growth. The company's leadership remains optimistic that this transaction will deliver lasting benefits, reinforcing its market presence in a highly competitive industry. As the company transitions into this new chapter, stakeholders will be keenly watching how these developments unfold in the coming months.

For more information about LivePerson and the implications of this exchange, please visit liveperson.com.