Ciena cuts spread on $700 million term loan B to Libor plus 200 bps

By Sara Rosenberg

New York, Sept. 20 – Ciena Corp. reduced pricing on its $700 million seven-year covenant-light term loan B (Ba1/BB) to Libor plus 200 basis points from Libor plus 225 bps, according to a market source.

Also, the original issue discount on the loan was revised to 99.875 from talk in the range of 99.5 to 99.75, the source said.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are the lead banks on the deal.

Recommitments were scheduled to be due at 5 p.m. ET on Thursday, the source added.

Allocations are expected on Friday.

Proceeds will be used to refinance the company’s existing term loan B and some of its convertible notes.

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

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