Comtech Telecommunications Corp. Enters Into New $550.0 Million Credit Facility
The new Credit Facility has a five-year term which expires in
- Significant increase in balance sheet flexibility;
- No scheduled payments of principal until maturity;
- Maximum Secured Leverage Ratio covenant of 3.75x, with no step downs;
- Minimum Interest Expense Coverage Ratio covenant of 3.25x;
Reduced interest rates of approximately 25 basis points as compared to
its prior facility based on the Company’s Secured Leverage Ratio as of
July 31, 2018; and
- Elimination or relaxation of many restrictive covenants in the Company’s prior facility.
These and other changes are more fully described in the Company’s Form
8-K filed with the
Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. The Company's SEC filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such SEC filings.
Michael D. Porcelain
Senior Vice President and Chief Operating Officer