Comtech Telecommunications Secures New Credit Facilities and Amends Equity Terms

Comtech Telecommunications (CMTL) just unveiled an announcement.

Comtech Telecommunications Corp. has secured a Credit Agreement providing a $162 million Term Loan Facility and a $60 million asset-based revolving credit facility, with $25 million already advanced at closing. The funds will be used to repay existing debts and support the company’s working capital and general corporate needs. The agreement includes eligibility criteria, interest rates based on Base Rate and SOFR Loans with additional margins that may increase if the company’s financial health is in question. The agreement also stipulates financial maintenance covenants and is guaranteed by domestic and foreign subsidiaries with substantial assets as collateral. Moreover, the company has issued warrants to lenders that allow them to purchase company stock and has modified terms of its Series B Convertible Preferred Stock to align with the new Credit Agreement.

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