Ciena Corporation Enters into Refinancing Amendment to Credit Agreement with the Lenders
January 29, 2020 at 03:37 am IST
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On January 23, 2020, Ciena Corporation, as borrower, and Ciena Communications Inc., Ciena Government Solutions Inc., Ciena Communications International, LLC and Blue Planet Software Inc., as guarantors, entered into a Refinancing Amendment to Credit Agreement with the lenders party thereto and the Administrative Agent (the “Refinancing Agreement”), pursuant to which Ciena consummated a permitted refinancing of the entire outstanding amount of the Existing Term Loan, and in accordance therewith, incurred new senior secured term loans in an aggregate principal amount of $693 million and maturing on September 28, 2025 (the “Refinancing Term Loan”). The proceeds of the Refinancing Term Loan were used in their entirety to refinance the Existing Term Loan. The Refinancing Agreement amends the Credit Agreement and provides that the Refinancing Term Loan will, among other things: mature on September28, 2025; amortize in equal quarterly installments in aggregate amounts equal to 0.25% of the principal amount of the Refinancing Term Loan as of January23, 2020, with the balance payable at maturity; be subject to mandatory prepayment provisions upon the occurrence of certain specified events substantially similar to the Existing Term Loan, including certain asset sales, debt issuances, and receipt of annual Excess Cash Flow (as defined in the Credit Agreement); bear interest, at Ciena’s election, at a per annum rate equal to (a) LIBOR (subject to a floor of 0.00%) plus an applicable margin of 1.75%, or (b) a base rate (subject to a floor of 1.00%) plus an applicable margin of 0.75%; and be repayable at any time at Ciena’s election, provided that repayment of the Refinancing Term Loan with proceeds of certain indebtedness prior to July 23, 2020 will require a prepayment premium of 1% of the aggregate principal amount of such prepayment. Except as amended by the Refinancing Agreement, the remaining terms of the Credit Agreement remain in full force and effect. The foregoing does not purport to be a complete description of the terms of the Refinancing Agreement and such description is qualified in its entirety by reference to the Refinancing Agreement, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.
Ciena Corporation is a network platform, software, and services company. The Companyâs solutions enable a range of network operators to deploy and manage networks that deliver services to businesses and consumers. Its segments include Networking Platforms, Platform Software and Services, Blue Planet Automation Software and Services, and Global Services. Its Networking Platforms segment consists of its Optical Networking and Routing and Switching portfolios. Its Platform Software and Services segment provides domain control management, analytics, data and planning tools and applications to manage networks. Its Blue Planet Automation Software and Services segment includes multi-domain service orchestration (MDSO), inventory management (BPI), route optimization and analysis (ROA), multi-cloud orchestration (MCO), and unified assurance and analytics (UAA). Global Services segment offers a suite of value-added services that help its customers to build, operate and improve their networks.