RingCentral, a global company in AI-powered business communications, expanded and extended its existing credit agreement. The transaction was led by Bank of America and JPMorgan with other participants including Wells Fargo, Goldman Sachs, Morgan Stanley and Mizuho, among others. The expanded credit facility now totals $1.24 billion, of which $930 million remains undrawn. The company intends to use the proceeds primarily to address its $609 million convertible notes due in March 2026, as well as to reduce overall borrowing costs by opportunistically refinancing other outstanding debt.
Key highlights of the restated credit agreement include:
- Increase of the undrawn delayed draw term loan facility from $350 million to $650 million
- Increase in the undrawn revolving credit facility from $225 million to $280 million
- Reduction in interest rates for the entire credit facility, including the drawn $310 million term loan
- Extension of maturities to 2030
“This is a proactive step to enhance our financial flexibility while securing more favorable terms,” Vaibhav Agarwal, chief financial officer of RingCentral, said. “With this additional capacity, we intend on fully addressing our 2026 convertible notes. Importantly, following this transaction, we expect to have no further debt maturities until 2030. This refinancing maintains our current leverage profile, and with strong free cash flows, we’re well-positioned to execute on our capital allocation priorities, including reducing debt, repurchasing stock and investing in innovation. This transaction also represents a strong vote of confidence from leading global financial institutions and follows recent credit rating upgrades from both Fitch Ratings and Moody’s, underscoring the continued strength of our financial position.”
