PLANO, Texcas, March 4, 2021
/PRNewswire/ -- Ribbon Communications Inc. (Nasdaq:
RBBN), a global provider of real time communications software and
IP optical transport solutions to service providers, enterprises,
and critical infrastructure sectors, today 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.
"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."
Citizens Bank, N.A., as administrative agent under the credit
facility, led the amendment with our syndicate banking partners
including Santander Bank, N. A.,
Silicon Valley Bank, JPMorgan Chase Bank, N.A., HSBC Bank
USA, N.A., Bank of America, N.A.,
Bank of Hope, Barclays Bank PLC, M&T Bank, Citibank, N.A., and
Fifth Third Bank, N.A.
About Ribbon
Ribbon Communications (Nasdaq: RBBN)
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. To
learn more about Ribbon visit rbbn.com.
Important Information Regarding Forward-Looking
Statements
The information in this release contains
forward-looking statements regarding future events that involve
risks and uncertainties. All statements other than statements of
historical facts contained in this release, including those
regarding the improvements to the capital structure and future
growth expectations for Ribbon Communications, are forward-looking
statements. The actual results of Ribbon Communications may differ
materially from those contemplated by the forward-looking
statements. For further information regarding risks and
uncertainties associated with Ribbon Communications' business,
please refer to the "Risk Factors" section of Ribbon
Communications' most recent Annual Report for the year ended
December 31, 2020 filed with the SEC.
Any forward-looking statements represent Ribbon Communications'
views only as of the date on which such statement is made and
should not be relied upon as representing Ribbon Communications'
views as of any subsequent date. While Ribbon Communications may
elect to update forward-looking statements at some point, Ribbon
Communications specifically disclaims any obligation to do so.
Investor
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SOURCE Ribbon Communications Inc.