Ribbon Communications amends credit agreement, to prepay $75 million

By Wendy Van Sickle

Columbus, Ohio, March 24 – Ribbon Communications Inc. amended its credit agreement, according to a news release Friday.

The amendment reduces the minimum consolidated fixed-charge coverage ratio and increases the maximum consolidated net leverage ratio that Ribbon must comply with on a quarterly basis with the quarter ending March 31, 2023 through March 31, 2024.

In addition, the amendment replaces Libor with SOFR as the alternative rate that may be used for calculating interest owed under the credit facility.

In connection with the amendment to the credit facility, Ribbon has agreed to a prepayment of $75 million of the principal amount outstanding on the term loan A, and Ribbon intends to use the net proceeds from the private placement of series A preferred stock and warrants, together with cash on hand, to pay down borrowings under the credit facility.

Ribbon Communications is a Westford, Mass.-based security and software solutions company.

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