Ribbon Communications, a global provider of real-time communications software and IP optical transport solutions to service providers, enterprises and critical infrastructure sectors, executed a third amendment to its credit agreement.
Citizens Bank, as administrative agent under the credit facility, led the amendment with Ribbon’s syndicate of banking partners, including Santander Bank, Silicon Valley Bank, JPMorgan Chase Bank, HSBC Bank, Bank of America, Bank of Hope, Barclays Bank, M&T Bank, Citibank and Fifth Third Bank.
Ribbon’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 an increase in commitments from some of the existing banks under the credit facility. 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 Q1/21 and full-year 2021 guidance.
“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,” Miguel Lopez, CFO of Ribbon Communications, said. “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.”