Ribbon Communications Announces Amended Credit Facility
PLANO, Texcas, March 4, 2021 /PRNewswire/ -- Ribbon Communications Inc. (Nasdaq: RBBN), a global provider of real time communications software and IP optical transport solutions to service providers, enterprises, and critical infrastructure sectors, today announced that it has executed an amendment ("Third Amendment") to its credit agreement.
The Company's total debt outstanding remains the same. The amendment increased Ribbon's existing Term Loan A credit facility by approximately $75 million, which was provided by new banks joining the credit facility, as well as some of the existing banks under the credit facility increasing their commitments. Ribbon used the proceeds to pay off its outstanding Term Loan B balance, which had a 500 bps higher interest rate margin. The revised structure will also improve some loan covenant terms. The amended facility was contemplated in Ribbon's 1Q21 and full year 2021 guidance provided on February 17, 2021.
"The amended credit facility is another step in our efforts to improve our capital structure as we build Ribbon into a recognized global technology leader," said Miguel Lopez, Chief Financial Officer. "This deal was substantially over-subscribed. We were impressed with the strong endorsement from Citizens Bank, our existing bank syndicate and two new bank participants. We believe their strong execution reflects their support and confidence in Ribbon and our strategy."
Citizens Bank, N.A., as administrative agent under the credit facility, led the amendment with our syndicate banking partners including Santander Bank, N. A., Silicon Valley Bank, JPMorgan Chase Bank, N.A., HSBC Bank USA, N.A., Bank of America, N.A., Bank of Hope, Barclays Bank PLC, M&T Bank, Citibank, N.A., and Fifth Third Bank, N.A.
Important Information Regarding Forward-Looking Statements
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SOURCE Ribbon Communications Inc.
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