Ribbon Communications Inc., a global provider of real time communications software and IP optical transport solutions to service providers, enterprises, and critical infrastructure sectors, 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.
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“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.”
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Ribbon Communications delivers communications software, IP and optical networking solutions to service providers, enterprises and critical infrastructure sectors globally. We engage deeply with our customers, helping them modernize their networks for improved competitive positioning and business outcomes in today’s smart, always-on and data-hungry world. Our innovative, end-to-end solutions portfolio delivers unparalleled scale, performance, and agility, including core to edge software-centric solutions, cloud-native offers, leading-edge security and analytics tools, along with IP and optical networking solutions for 5G.
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