v3.26.1
DEBT
3 Months Ended
Mar. 31, 2026
DEBT  
DEBT

(9) DEBT

As of March 31, 2026, the Company had $339.9 million outstanding under its current credit facility (the “2024 Credit Facility”), all of which relate to the term loan. Scheduled quarterly principal repayments continued during the period in accordance with the credit agreement. There were no amounts outstanding under the revolving credit facility, and the Company had $35.0 million of available borrowing capacity as of March 31, 2026.

The Company remained in compliance with all financial covenants under the 2024 Credit Facility as of March 31, 2026.

On May 5, 2026, the Company entered into the First Amendment and Limited Waiver to Credit Agreement (the “First Amendment”) with Ribbon Communications Operating Company, Inc., HPS Investment Partners, LLC, as administrative agent, and the consenting lenders. The First Amendment (1) waives compliance with the maximum consolidated net leverage ratio financial covenant as of and for the period ending June 30, 2026, (2) increases the Maximum Consolidated Net Leverage Ratio (as defined in the 2024 Credit Facility) to 4.50:1.00 as of and for the period ending September 30, 2026, and sets the ratio for all subsequent quarters to 4.00:1.00, and (3) modifies the applicable interest rate margins for any quarter in which the Consolidated Net Leverage Ratio exceeds 3.75:1.00 to 7.00%.

The Company had the following outstanding borrowings, unamortized debt issuance costs and original issue discount, letters of credit, interest rates, and remaining borrowing capacity under its current credit facility as of March 31, 2026 and December 31, 2025:

March 31, 

December 31, 

 

2026

2025

 

Current portion of Term Debt

$

8,750

$

8,750

Long-term Debt, net of Current:

Long-term Debt, net of Current (Face Amount)

$

331,188

$

333,375

Original Issue Discount

(4,511)

(4,861)

Unamortized Debt Issuance Costs - Contra-Liability

 

(3,702)

 

(3,989)

Long-term Debt, net of Current

$

322,975

$

324,525

Total Face Amount of Borrowings

$

339,938

$

342,125

Unamortized Original Issue Discount and Debt Issuance Costs:

 

 

Other Assets

$

817

$

881

Long-Term Debt - Contra Liability

 

8,213

 

8,850

Total Unamortized Original Issue Discount and Debt Issuance Costs

$

9,030

$

9,731

Available Borrowing Capacity

$

35,000

$

35,000

Average Interest Rates:

Term Loan

 

9.9

%  

 

10.3

%

The Company’s debt maturities as of March 31, 2026 were as follows:

Years ending December 31, 

Remainder of 2026

$

6,563

2027

13,125

2028

17,500

2029

302,750

$

339,938

Letters of Credit and Other Guarantees

In the course of its business, the Company uses letters of credit, bank guarantees, and surety bonds (collectively, "Guarantees"). The Company had $11.2 million and $11.1 million of Guarantees under various uncommitted facilities as of March 31, 2026 and December 31, 2025, respectively. The Company had no letters of credit outstanding under its current credit facility as of March 31, 2026 or December 31, 2025. At March 31, 2026 and December 31, 2025, the Company had cash collateral of $2.0 million and $1.7 million supporting the Guarantees, respectively, which are reported as Restricted cash in the Company’s condensed consolidated balance sheets.