CMBM Enters Material Agreement, Creates New Financial Obligation

TL;DR

**CMBM just took on a new financial obligation, watch for details on its impact.**

AI Summary

Cambium Networks Corp. (CMBM) filed an 8-K on January 5, 2024, reporting a material definitive agreement and the creation of a direct financial obligation, with the earliest event occurring on December 29, 2023. This filing indicates that the company has entered into a significant new financial commitment, which could impact its balance sheet and future financial performance. Investors should pay attention to the details of this agreement as it could affect the company's debt levels and profitability, potentially influencing the stock's valuation.

Why It Matters

This filing signals a new financial commitment for Cambium Networks, which could alter its financial health and future earnings potential. Understanding the nature of this obligation is crucial for assessing the company's risk and growth prospects.

Risk Assessment

Risk Level: medium — The filing indicates a new financial obligation without specifying its nature or size, introducing uncertainty about its potential impact on the company's financial stability.

Analyst Insight

A smart investor would await further details on the 'Material Definitive Agreement' and 'Direct Financial Obligation' to assess their impact on Cambium Networks' financial health before making any investment decisions.

Key Players & Entities

• Cambium Networks Corp. (company) — the registrant filing the 8-K
• December 29, 2023 (date) — date of the earliest event reported
• January 5, 2024 (date) — date the 8-K was filed
• CMBM (company) — trading symbol for Cambium Networks Corp.
• Nasdaq Global Market (company) — exchange where CMBM ordinary shares are registered

Forward-Looking Statements

• Cambium Networks Corp. will provide more details about the material definitive agreement and financial obligation in a subsequent filing or earnings call. (Cambium Networks Corp.) — high confidence, target: Q1 2024

FAQ

Key Financial Figures

• $0.0001 — on which registered Ordinary shares, $0.0001 par value CMBM Nasdaq Global Market
• $656,250 — principal in equal quarterly amounts of $656,250, which commenced with the first full fi

Filing Documents

• cmbm-20231229.htm (8-K) — 47KB
• cmbm-ex10_47.htm (EX-10.47) — 2003KB
• 0000950170-24-002441.txt ( ) — 2467KB
• cmbm-20231229_lab.xml (EX-101.LAB) — 14KB
• cmbm-20231229_pre.xml (EX-101.PRE) — 10KB
• cmbm-20231229.xsd (EX-101.SCH) — 2KB
• cmbm-20231229_htm.xml (XML) — 5KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On December 29, 2023 (the Amendment Effective Date), Cambium Networks Corporation (the “Company”) entered into the Second Amendment to Credit Agreement (the “Second Amendment), which amends the Credit Agreement, dated as of November 17, 2021 (the “Original Credit Agreement,” the Original Credit Agreement as amended prior to the date hereof, the “Existing Credit Agreement,” and the Existing Credit Agreement, as amended by the Second Amendment, the “Amended Credit Agreement”) by and among, inter alios , Cambium Networks, Ltd. as the borrower (the “Borrower”), the Company as a guarantor (“Holdings”), Cambium (US), L.L.C., as a guarantor, certain other subsidiaries of Holdings party thereto as guarantors (with the Borrower and each guarantor being, individually, a “Loan Party” and collectively, the “Loan Parties”), Bank of America, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”), a Lender, Swingline Lender and an L/C Issuer and the other Lenders party thereto from time to time. Capitalized terms used but not otherwise defined herein shall have the meanings as assigned to such terms in the Second Amendment and Amended Credit Agreement attached to this Form 8-K as Exhibit 10.47. The Second Amendment amends the Existing Credit Agreement by, among other things, establishing a Covenant Relief Period during which time Holdings is (a) required to maintain certain Liquidity as provided in the Amended Credit Agreement, (b) required to maintain certain levels of Consolidated EBITDA as provided in the Amended Credit Agreement, (c) required to provide certain additional financial reporting to the Administrative Agent and (d) not required to meet (or, during such period, test) its Consolidated Leverage Ratio or Consolidated Fixed Charge Coverage Ratio. Additionally,

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. Exhibit No. Description 10.47 Second Amendment to Credit Agreement dated December 29, 2023 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

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. CAMBIUM NETWORKS CORPORATION Date: January 5, 2024 By: /s/ Andrew P. Bronstein Name: Title: Andrew P. Bronstein Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR