Ribbon Communications amends, restates $150 million credit agreement

By Sarah Lizee

Olympia, Wash., May 2 – Ribbon Communications Inc. amended and restates its senior secured credit agreement on Monday with Silicon Valley Bank as administrative agent, providing for $150 million of commitments, according to an 8-K filing with the Securities and Exchange Commission.

Silicon Valley Bank is the lead arranger, Citizens Bank, NA is a joint lead arranger and SunTrust Bank is documentation agent.

The facilities are comprised of a $50 million term loan that was advanced in full on Monday and a $100 million revolver.

Of the revolver amount, $15 million is available for letters of credit and $15 million is available for swingline loans.

The facilities are scheduled to mature in April 2024 and may be increased by $75 million.

Interest is Libor plus 150 basis points to 300 bps, based on the consolidated leverage ratio. There is a 0% Libor floor. Interest at close was Libor plus 200 bps.

The commitment fee ranges from 20 bps to 30 bps per year on the daily amount of the unused portions of commitments. The fee at close was 22.5 bps.

Financial covenants include a minimum consolidated quick ratio, minimum consolidated fixed charge coverage ratio and maximum consolidated leverage ratio.

Also on Monday, Ribbon repaid in full all outstanding amounts under a promissory note in the original principal amount of $22.5 million dated as of Oct. 27, 2017 and terminated all obligations under it.

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

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