Ciena enters into up to $300 million five-year ABL facility

By Wendy Van Sickle

Columbus, Ohio, Oct. 31 – Ciena Corp. entered a credit agreement on Monday with Bank of America, NA as administrative agent providing for a five-year ABL facility of up to $300 million, according to an 8-K filing with the Securities and Exchange Commission.

Ciena has the option to increase total revolving commitments to up to $450 million.

Of the total commitment amount, $200 million is available for issuances of letters of credit.

There are $20 million and C$2 million sublimits for swingline loans in U.S. and Canadian dollars respectively.

Borrowings bear interest at Libor plus a margin ranging from 125 bps to 150 bps, depending on use.

The credit agreement matures on Oct. 28, 2024.

BofA Securities, Inc., Deutsche Bank Securities Inc. and Wells Fargo Securities, LLC are the joint lead arrangers and joint bookrunners.

Deutsche Bank and Wells Fargo are the co-syndication agents

JPMorgan Chase Bank NA is the documentation agent.

Ciena transferred about $77.1 million of letters of credit issued under its previous ABL facility with Deutsche Bank as administrative agent to the new credit agreement. There were no other amounts outstanding under the new facility at closing.

The company plans to use the ABL facility for letters of credit and general corporate purposes.

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

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