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Citizens Bank Agents Credit Facility Amendment for Ribbon Communications

March 05, 2021, 07:25 AM
Filed Under: Communications
Related: Citizens Bank

Ribbon Communications executed an amendment ("Third Amendment") to its credit agreement. Citizens Bank, administrative agent under the credit facility, led the amendment with the syndicate banking partners including Santander Bank, Silicon Valley Bank, JPMorgan Chase Bank, HSBC Bank USA, Bank of America, Bank of Hope, Barclays Bank PLC, M&T Bank, Citibank, and Fifth Third Bank.

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."

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