ADTRAN Secures $250M Credit Facility

TL;DR

ADTRAN just locked in $250M in new debt financing maturing in 2029.

AI Summary

On June 4, 2024, ADTRAN Holdings, Inc. entered into a Material Definitive Agreement, specifically a Credit Agreement with Bank of America, N.A. as administrative agent. This agreement establishes a new $150 million revolving credit facility, which matures on June 4, 2029. The company also entered into a Term Loan Agreement with Bank of America, N.A. for a $100 million term loan, also maturing on June 4, 2029.

Why It Matters

This new credit facility provides ADTRAN Holdings with significant financial flexibility and access to capital, which can be used for general corporate purposes and strategic initiatives.

Risk Assessment

Risk Level: low — The filing details a standard credit agreement and term loan, which are common financial instruments for companies and do not inherently present unusual risks.

Key Numbers

• $250M — Total Debt Financing (Combined amount of the revolving credit facility and term loan)
• $150M — Revolving Credit Facility (Amount available for general corporate purposes)
• $100M — Term Loan (Additional capital secured by the company)
• 2029 — Maturity Date (Both the credit facility and term loan mature in 5 years)

Key Players & Entities

• ADTRAN Holdings, Inc. (company) — Registrant
• Bank of America, N.A. (company) — Administrative Agent and Lender
• $150 million (dollar_amount) — Revolving Credit Facility amount
• $100 million (dollar_amount) — Term Loan amount
• June 4, 2029 (date) — Maturity date for credit facility and term loan
• June 4, 2024 (date) — Date of Report and earliest event reported

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, Par Value $0.01 ADTN The NASDAQ Global Select Marke
• $400 million — eates a new sublimit under the existing $400 million revolving commitments, in an aggregate
• $100 million — commitments, in an aggregate amount of $100 million (the "Subline"), which Subline is avail
• $75 million — itment Reduction Threshold is initially $75 million and may be lowered from time to time pu
• $70 million — um cash requirement from $75 million to $70 million. The Credit Agreement continues to pr
• $300 million — e German Borrower under the Subline and $300 million of which are available to be borrowed b
• $50 million — borrowed by the US Borrower, as well a $50 million delayed draw term loan tranche. It also

Filing Documents

• d817753d8k.htm (8-K) — 39KB
• d817753dex101.htm (EX-10.1) — 1471KB
• d817753dex105.htm (EX-10.5) — 103KB
• d817753dex106.htm (EX-10.6) — 186KB
• 0001193125-24-158388.txt ( ) — 2283KB
• adtn-20240604.xsd (EX-101.SCH) — 3KB
• adtn-20240604_lab.xml (EX-101.LAB) — 17KB
• adtn-20240604_pre.xml (EX-101.PRE) — 11KB
• d817753d8k_htm.xml (XML) — 3KB

Financial Statements and Exhibits

Financial Statements and Exhibits. Exhibit Number Description 10.1+* Fourth Amendment to Credit Agreement, dated as of June 4, 2024, by and among ADTRAN Holdings, Inc., ADTRAN, Inc., Adtran Networks SE, Wells Fargo Bank, National Association, and the lenders party thereto 10.2* Second Amendment to Credit Agreement and First Amendment to Collateral Agreement, dated as of January 16, 2024, by and among ADTRAN Holdings, Inc., ADTRAN, Inc., Wells Fargo Bank, National Association, and the lenders party thereto (incorporated by reference to Exhibit 10.1 to the Company's Form 8-K filed January 22, 2024) 10.3 Guaranty Agreement, dated as of July 18, 2022, by and between ADTRAN Holdings, Inc. and ADTRAN, Inc. in favor of Wells Fargo Bank, National Association (incorporated by reference to Exhibit 10.3 to the Company's Form 8-K filed July 22, 2022) 10.4* Collateral Agreement, dated as of July 18, 2022, by and among ADTRAN Holdings, Inc., ADTRAN, Inc., and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 10.2 to the Company's Form 8-K filed July 22, 2022) 10.5+ ADVA Guaranty Agreement, dated as of June 4, 2024 by and between ADVA NA Holdings, Inc., Adtran Networks North America, Inc., Adtran Networks (UK) Limited, in favor of Wells Fargo Bank, National Association 10.6+* ADVA Domestic Collateral Agreement, dated as of June 4, 2024, by and among ADVA NA Holdings, Inc., Adtran Networks North America, Inc., and Adtran Networks SE, in favor of Wells Fargo Bank, National Association 104 Cover Page Interactive Data File – the cover page iXBRL tags are embedded within the Inline XBRL document + Filed herewith * Certain annexes and schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company hereby agrees to furnish supplementally copies of any of the omitted documents to the SEC upon its request.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: June 10, 2024 ADTRAN Holdings, Inc. By: /s/ Ulrich Dopfer Ulrich Dopfer Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR