Luminar Technologies, Inc. (NASDAQ: LAZR) has launched a tender offer to buy back up to the full principal amount of its outstanding floating-rate senior secured notes due 2028. The company will use $89.35 million in cash, the net proceeds from the February 2 sale of its wholly-owned subsidiary Luminar Semiconductor, Inc. to Quantum Computing Inc. for $110 million, to fund the repurchase.
The offer allows note holders to tender their securities at 103% of the aggregate principal amount plus accrued and unpaid interest. It will close at 5:00 p.m. New York City time on March 9, 2026. If the total tendered amount exceeds the $89.35 million offer, Luminar will purchase notes on a pro-rata basis; if it falls short, the remaining proceeds will be applied to a separate offer for the company's second-lien notes. The repurchase is required under the notes' indenture, which mandates that "Excess Proceeds" from the subsidiary sale exceeding $3.5 million be used to repurchase the senior secured debt.
This debt repurchase comes amid Luminar's Chapter 11 bankruptcy proceedings, which began in December 2025. The company has been divesting non-core assets--including the sale of its semiconductor unit and the sale of LiDAR assets to MicroVision--to reduce leverage and shore up liquidity. The tender offer is a key step in trimming the company's debt load and improving its balance-sheet profile as part of the broader restructuring process.
By repurchasing the 2028 notes, Luminar will lower its interest expense and extend its debt maturity profile, providing additional flexibility during the restructuring. The action signals to creditors and investors that the company is actively managing its capital structure during bankruptcy, potentially improving its standing in the restructuring process and positioning it for a more sustainable post-Chapter 11 future.