Ciena lifts term loan B to $250 million, flexes to Libor plus 350 bps

By Sara Rosenberg

New York, April 19 – Ciena Corp. upsized its five-year covenant-light term loan B to $250 million from $200 million and lowered pricing to Libor plus 350 basis points from talk of Libor plus 375 bps to 400 bps, according to a market source.

Also, a step-down in pricing was added to the term loan B to Libor plus 325 bps at 3 times total leverage and the original issue discount was tightened to 99.5 from 99, the source said.

The term loan B still has a 0.75% Libor floor and 101 soft call protection for six months.

Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are the joint lead arrangers on the deal.

Recommitments were due at 3 p.m. ET on Tuesday, the source continued.

Proceeds will be used to add cash to the balance sheet and, in the future, to help repay convertible notes due in 2017. The additional proceeds raised from the upsizing will be used for general corporate purposes, including to address near-term convertible notes maturities, the source added.

Closing is expected on April 25.

Ciena is a Hanover, Md.-based supplier of communications networking equipment and software.

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