Credit Agreements |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| Credit Agreements | 10. CREDIT AGREEMENTS The carrying amounts of the Company's non-current revolving credit facility in its Condensed Consolidated Balance Sheets were as follows:
As of June 30, 2026 and December 31, 2025, the estimated fair value of our revolving credit agreement approximates the carrying value. As of June 30, 2026, the weighted average interest rate on our revolving credit agreement was 8.89%. Revolving Credit Agreement On July 18, 2022, ADTRAN, Inc., as the borrower ("U.S. Borrower"), and the Company entered into a credit agreement with a syndicate of banks, including Wells Fargo Bank, National Association, as administrative agent (“Administrative Agent”), and the other lenders named therein (the “Original Credit Agreement”), as amended by the First Amendment to Credit Agreement, dated August 9, 2023 (“Amendment No. 1”), the Second Amendment to Credit Agreement, dated January 16, 2024 (“Amendment No. 2”), the Third Amendment to Credit Agreement, dated March 12, 2024 (“Amendment No. 3”), the Fourth Amendment to Credit Amendment, dated June 4, 2024 among Adtran Networks (the "German Borrower") and the parties set forth above ("Amendment No. 4"), the Fifth Amendment to Credit Agreement and Waiver, dated May 6, 2025, among the German Borrower and the parties set forth above (“Amendment No. 5”), and the Sixth Amendment and Consent Credit Agreement, dated September 16, 2025, among the U.S. Borrower, the German Borrower and the lenders party thereto ("Amendment No. 6"); (the Original Credit Agreement as amended by Amendment No. 1, Amendment No. 2, Amendment No. 3, Amendment No. 4, Amendment No. 5 and Amendment No. 6, the “Former Credit Agreement”). As of June 30, 2026, the Former Credit Agreement provided for a secured revolving credit facility of up to $350.0 million of borrowings, $50.0 million of which was solely available to the German Borrower. As of June 30, 2026, the Company’s borrowings under the revolving line of credit were $25.0 million. As of June 30, 2026, the U.S. Borrower had a total of $6.8 million in letters of credit under the Former Credit Agreement, leaving a net amount (after giving effect to the $25.0 million of outstanding borrowings described above) of $318.2 million available for future borrowings, based on debt covenant compliance metrics. Moreover, the Former Credit Agreement provided for a sublimit under the existing $350.0 million revolving commitments in an aggregate amount of $50.0 million (“Subline”), which Subline was available for borrowings by the German Borrower. The Company had no borrowings under the Subline as of June 30, 2026. The existing swing line sublimit and letter of credit sublimit under the Former Credit Agreement remained available to the U.S. Borrower (and not to the German Borrower) as of such date. Otherwise, the loans under the Subline were subject to substantially the same terms and conditions under the Former Credit Agreement (including with respect to the interest rate and maturity date) as the other existing revolving commitments. On July 21, 2026, the Company terminated the Former Credit Agreement with Wells Fargo, repaid all principal amounts under the Former Credit Agreement and entered into the New Credit Agreement, which is a five-year, $350.0 million credit agreement with J.P. Morgan Chase Bank, N.A. See Note 18, Subsequent Events of this report for additional information regarding the terms of the new J.P. Morgan Chase Bank credit agreement. |
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