Ciena readies launch of $400 million term loan B for Tuesday

By Sara Rosenberg

New York, Jan. 9 – Ciena Corp. is set to hold a lender call at 10:30 a.m. ET on Tuesday to launch a $400 million seven-year term loan B, according to a market source.

BofA Securities Inc., JPMorgan Chase Bank, Goldman Sachs Bank USA, Wells Fargo Securities LLC and others to be named are the lead arrangers on the deal.

The term loan has 101 soft call protection for six months, the source said.

Commitments are due at noon ET on Friday.

Proceeds will be used to support the acquisitions of Tibit Communications Inc., a Petaluma, Calif.-based provider of open, microplug OLT technology that enables rapid PON deployment, and Benu Networks Inc., a Burlington, Mass.-based provider of cloud-native software solutions, to add cash to the balance sheet and for general corporate purposes.

Under the Tibit acquisition agreement, Ciena will acquire the remaining shares of Tibit that it does not already own in a transaction valued at about $210 million.

Closing on the Tibit transaction is expected during Ciena’s fiscal first quarter 2023, subject to customary closing conditions.

The Benu acquisition closed during Ciena’s fiscal first quarter 2023.

Ciena is a Hanover, Md.-based networking systems, services and software company.

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