Ribbon Communications Inc. has announced the completion of a new $385 million senior secured credit facility, which is comprised of a $350 million term loan and a $35 million revolving credit facility. The proceeds from the term loan will be used to repay outstanding debt under the current credit facility and to redeem in full the company's outstanding Series A preferred stock, as well as to pay related fees, costs, and expenses.
The loans under the new credit facility will mature on June 21, 2029, and will initially bear interest at a rate per annum equal to SOFR plus 6.25%. Following the delivery of the financial statements for the fiscal year ended December 31, 2024, the interest rate will be adjusted to SOFR plus a margin of 5.75% to 6.25% based on the company's consolidated net leverage.
HPS Investment Partners, LLC will serve as the administrative agent under the new credit facility, with HPS Investment Partners, LLC and WhiteHorse Capital acting as joint lead arrangers and bookrunners.
In connection with the closing of the new credit facility, the company issued a notice of redemption in full of its Series A preferred stock, which will be redeemed on June 25, 2024.
Ribbon Communications Inc. (NASDAQ: RBBN) delivers communications software, IP and optical networking solutions to service providers, enterprises, and critical infrastructure sectors globally. The company's end-to-end solutions portfolio includes core to edge software-centric solutions, cloud-native offers, leading-edge security and analytics tools, as well as IP and optical networking solutions for 5G and broadband internet.
For more information about Ribbon Communications Inc., visit their website at rbbn.com. Following these announcements, the company's shares moved -0.7%, and are now trading at a price of $3.01. Check out the company's full 8-K submission here.
