Harmonic has entered a new five-year, $160 million committed credit agreement, accelerating its multi-year growth plan.
The new funding consists of a lending syndicate led and arranged by Citibank, N.A., which is co-led by JPMorgan Chase Bank, N.A., Wells Fargo Securities, and HSBC and MUFG as additional lenders. This new credit facility replaces Harmonic’s $25 million line of credit with JPMorgan Chase Bank, N.A.
The credit facility provides for a $120 million secured revolving loan facility, a $40 million secured delayed draw term loan facility, and an option, subject to certain conditions, to request $100 million or more in additional loan commitments under an accordion feature in the Credit Facility.
"We are pleased to announce this new facility, which provides us increased liquidity and a stronger balance sheet, reinforcing our multi-year growth plan," said Walter Jankovic, CFO of Harmonic. "The Credit Facility also affords us greater financial flexibility, including the ability to redeem our 2024 Convertible Notes and continue buybacks under our existing share repurchase program.”
He added that “this facility provides the versatility to support our previously announced ongoing strategic review of the Video business, aimed at generating long-term shareholder value."