Ciena expands ABL facility, extends maturity, lowers pricing

By Marisa Wong

Morgantown, W.Va., Jan. 13 – Ciena Corp. amended its credit agreement dated Aug. 13, 2012 with Deutsche Bank AG New York Branch as administrative agent and collateral agent to increase the total commitment under its ABL facility to $250 million from $200 million, according to an 8-K filing with the Securities and Exchange Commission.

Of the total commitment amount, $200 million is available for issuances of letters of credit.

The amendment also expands the accordion feature, allowing Ciena to further increase total commitments to $325 million.

In addition, the amendment extends the maturity date of the facility to Dec. 31, 2020 from Dec. 31, 2016 but provides for an accelerated maturity in the event that Ciena and its subsidiaries are unable to satisfy a minimum liquidity test 90 days prior to the maturity date of any debt greater than or equal to $100 million.

The interest rate was reduced by 25 basis points to Libor plus a margin ranging from 125 bps to 175 bps. The actual margin is based on utilization.

The amendment also reduces the minimum aggregate amount of unrestricted cash and cash equivalents that Ciena and its domestic subsidiaries are required to maintain at all times to $100 million from $150 million.

The company entered into the amendment on Jan. 8.

Ciena is a Hanover, Md.-based supplier of communications networking equipment and software.

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