Press release
Ribbon Communications Inc. Announces Closing of New $385 Million Senior Secured Credit Facility
Proceeds will be used to repay outstanding debt under current credit facility and to redeem Series A Preferred Stock PLANO, Texas, June 21, 2024 /PRNewswire/
About this update from Ribbon Communications Inc.
[{"type":"text","content":"Proceeds will be used to repay outstanding debt under current credit facility and to redeem Series A Preferred Stock\nPLANO, Texas, June 21, 2024 /PRNewswire/ -- Ribbon Communications Inc. (Nasdaq: RBBN) (\"Ribbon\"), a global provider of real time communications technology and IP optical networking solutions to many of the world's largest service providers, enterprises, and critical infrastructure operators to modernize and protect their networks, today announced that it has completed the previously announced $385 million senior secured credit facility (the \"2024 Credit Facility\") comprised of a $350 million term loan and a $35 million revolving credit facility. Proceeds from the term loan under the 2024 Credit Facility will be used to refinance the prior credit facility, redeem in full Ribbon's outstanding Series A Preferred Stock and pay fees, costs and expenses related to the 2024 Credit Facility. Excess proceeds from the term loan will be used for working capital and other general corporate purposes.\n\n \n \n \n \n \n \n\n \nLoans under the 2024 Credit Facility will mature on June 21, 2029. The loans will initially bear interest at a rate per annum equal to SOFR plus 6.25%. After Ribbon delivers the financial statements for the fiscal year ended December 31, 2024 pursuant to the 2024 Credit Facility, the interest rate will be SOFR plus a margin of 5.75% to 6.25% depending on the Company's consolidated net leverage. At the Company's option, interest may be calculated using an alternative base rate plus a margin ranging from 4.75% to 5.25%. Outstanding amounts under the 2024 Credit Facility are secured by substantially all of the assets of Ribbon, and certain of the Ribbon's subsidiaries. \nHPS Investment Partners, LLC will serve as Administrative Agent under the 2024 Credit Facility and HPS Investment Partners, LLC and WhiteHorse Capital served as joint lead arrangers and bookrunners.\n\"We are pleased to complete this important milestone for the Company that provides us with the right capital structure as we look to continue to profitably grow the business,\" said Mick Lopez, Chief Financial Officer of Ribbon Communications. \"We believe that HPS and WhiteHorse Capital will be excellent financial partners due to their strategic perspective and financial strength. With them, we believe our capital structure will have the ...