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Viavi Solutions gets $300 million senior secured revolver due 2023
By Sarah Lizee
Olympia, Wash., May 6 – Viavi Solutions Inc. entered into a credit agreement with Wells Fargo Bank, NA as administrative agent on Tuesday, providing for a $300 million senior secured revolver due March 1, 2023, according to an 8-K filing with the Securities and Exchange Commission.
The credit agreement also provides that under certain circumstances the company may incur term loans or increase the revolving commitments up to $200 million plus additional amounts so long as the company’s secured net leverage ratio determined on a pro forma basis does not exceed 1.5 to 1.0.
The proceeds will be used for working capital and other general corporate purposes.
Interest is Libor plus 175 basis points to 250 bps, based on the company’s consolidated secured leverage ratio. The commitment fee ranges from 30 bps to 40 bps, also based on leverage.
The credit agreement contains some financial covenants that require the company to maintain a total net leverage ratio not greater than 4 to 1, and an interest coverage ratio of at least 3 to 1.
Wells Fargo Securities, LLC, SunTrust Robinson Humphrey and BNP Paribas Securities Corp. are the joint lead arrangers and joint bookrunners. Truist Bank and BNP are the co-syndication agents.
Viavi is a Milpitas, Calif.-based network test, measurement and assurance technology company.
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