Cambium amends credit agreement following IPO, makes partial paydown

By Sarah Lizee

Olympia, Wash., July 1 – Cambium Networks Corp. entered into a third amendment to its credit agreement, under which administrative agent Silicon Valley Bank and the lenders consented to some actions taken by the company in connection with its initial public offering, according to an 8-K filing with the Securities and Exchange Commission.

As a condition to the third amendment, the company agreed to repay $30,712,200 to the lenders out of the net proceeds of the IPO.

Following the repayment, the total term loan commitment under the credit agreement was reduced to $72,375,000, all outstanding amounts under the revolver were repaid, leaving an available revolving commitment of $10 million, after giving pro forma effect to the transaction the company’s liquidity was not less than $30 million, and the minimum consolidated fixed charge coverage ratio for the trailing 12 month period ending Dec. 31, 2019 and each trailing 12 month quarterly period ending thereafter was amended to 1.25 to 1:00.

All other financial covenants remained the same.

Interest remains Libor plus 400 basis points to 475 bps, depending on the consolidated leverage ratio.

Following the regularly scheduled principal payment of $2,375,000 on June 28, the outstanding term loan commitment was reduced to $70 million.

Silicon Valley Bank and HSBC Bank USA, NA are joint lead arrangers. Cadence Bank, NA is the syndication agent and MUFG Union Bank, NA is the documentation agent.

Rolling Meadows, Ill.-based Cambium Networks provides wireless broadband networking infrastructure solutions for network providers.

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