Proceeds will be used to repay outstanding
debt under current credit facility and to redeem Series A Preferred
Stock
PLANO,
Texas, June 21, 2024 /PRNewswire/ -- Ribbon
Communications Inc. (Nasdaq: RBBN) ("Ribbon"), a global
provider of real time communications technology and IP optical
networking solutions to many of the world's largest service
providers, enterprises, and critical infrastructure operators to
modernize and protect their networks, today announced that it has
completed the previously announced $385
million senior secured credit facility (the "2024 Credit
Facility") comprised of a $350
million term loan and a $35
million revolving credit facility. Proceeds from the term
loan under the 2024 Credit Facility will be used to refinance the
prior credit facility, redeem in full Ribbon's outstanding Series A
Preferred Stock and pay fees, costs and expenses related to the
2024 Credit Facility. Excess proceeds from the term loan will
be used for working capital and other general corporate
purposes.
Loans under the 2024 Credit Facility will mature on June 21, 2029. The loans will initially
bear interest at a rate per annum equal to SOFR plus 6.25%.
After Ribbon delivers the financial statements for the fiscal year
ended December 31, 2024 pursuant to
the 2024 Credit Facility, the interest rate will be SOFR plus a
margin of 5.75% to 6.25% depending on the Company's consolidated
net leverage. At the Company's option, interest may be
calculated using an alternative base rate plus a margin ranging
from 4.75% to 5.25%. Outstanding amounts under the 2024
Credit Facility are secured by substantially all of the assets of
Ribbon, and certain of the Ribbon's subsidiaries.
HPS Investment Partners, LLC will serve as Administrative Agent
under the 2024 Credit Facility and HPS Investment Partners, LLC and
WhiteHorse Capital served as joint lead arrangers and
bookrunners.
"We are pleased to complete this important milestone for the
Company that provides us with the right capital structure as we
look to continue to profitably grow the business," said
Mick Lopez, Chief Financial Officer
of Ribbon Communications. "We believe that HPS and WhiteHorse
Capital will be excellent financial partners due to their strategic
perspective and financial strength. With them, we believe our
capital structure will have the flexibility to address our future
growth opportunities."
In connection with the closing of the 2024 Credit Facility, the
Company also issued a notice of redemption in full of its Series A
Preferred Stock. Under the terms of the redemption, the
Series A Preferred Stock will be redeemed on June 25, 2024.
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 and
broadband internet. We maintain a keen focus on our commitments to
Environmental, Social and Governance (ESG) matters, offering an
annual Sustainability Report to our stakeholders. To learn more
about Ribbon visit rbbn.com.
Important Information Regarding Forward-Looking
Statements
The information in this release
contains "forward-looking statements" within the meaning of the
U.S. Private Securities Litigation Reform Act of 1995, which are
subject to a number of risks and uncertainties. All
statements other than statements of historical facts contained in
this release, including without limitation statements regarding the
Company's future growth and the redemption of the Series A
Preferred Stock, are forward-looking statements. Without limiting
the foregoing, the words "believes", "estimates", "expects",
"expectations", "intends", "may", "plans", "projects" and other
similar language, are intended to identify forward-looking
statements.
Forward-looking statements are based on the Company's current
expectations and assumptions regarding its business, the economy
and other future conditions. Because forward-looking statements
relate to the future, they are subject to inherent uncertainties,
risks and changes in circumstances that are difficult to
predict. Actual results may differ materially from those
contemplated in these forward-looking statements due to various
risks, uncertainties and other important factors, including, among
others, the effects of geopolitical instabilities and wars,
including in Israel and
Ukraine (and the impact of
sanctions and trade restrictions imposed as a result thereof);
operational disruptions at facilities located in Israel including as a result of military
call-ups of the Company's employees in Israel, closure of the offices there or the
temporary or long-term closure of contract manufacturing in the
region; the potential impact of litigation; risks related to supply
chain disruptions, including as a result of component availability;
the impact of new terms and/or covenants in the 2024 Credit
Facility; risks resulting from higher interests rates and continued
inflationary pressures; the impact of restructuring and
cost-containment activities; unpredictable fluctuations in
quarterly revenue and operating results; risks related to
cybersecurity and data intrusion; failure to compete successfully
against telecommunications equipment and networking companies;
failure to grow the Company's customer base or generate recurring
business from existing customers; credit risks; the timing of
customer purchasing decisions and the Company's recognition of
revenues; macroeconomic conditions, including inflation; market
acceptance of the Company's products and services; rapid
technological and market change; the ability to protect Company
intellectual property rights and obtain necessary licenses; the
ability to maintain partner, reseller, distribution and vendor
support and supply relationships; the potential for defects in the
Company's products; increases in tariffs, trade restrictions or
taxes on the Company's products; and currency fluctuations.
These factors are not intended to be an all-encompassing list of
risks and uncertainties that may affect the Company's business and
results from operations. Additional information regarding these and
other factors can be found in the Company's reports filed with the
Securities and Exchange Commission, including, without limitation,
its Form 10-K for the year ended December
31, 2023. In providing forward-looking statements, the
Company expressly disclaims any obligation to update these
statements publicly or otherwise, whether as a result of new
information, future events or otherwise, except as required by
law.
Investor Relations
+1 (978) 614-8050
ir@rbbn.com
Media Contact
Catherine
Berthier
+1 (646) 741-1974
cberthier@rbbn.com
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SOURCE Ribbon Communications Inc.
