SAN
JOSE, Calif., Dec. 21,
2023 /PRNewswire/ -- Harmonic Inc. (NASDAQ: HLIT)
today announced that it has entered into a new five-year,
$160 million committed credit
agreement (the "Credit Facility") with a lending syndicate led and
arranged by Citibank, N.A., co-led by JPMorgan Chase Bank, N.A. and
Wells Fargo Securities, LLC, and includes HSBC and MUFG as
additional lenders. The Credit Facility replaces the Company's
existing $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, chief financial officer 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. Additionally,
this facility provides the versatility to support our previously
announced ongoing strategic review of the Video business, aimed at
generating long-term shareholder value."
About Harmonic Inc.
Harmonic (NASDAQ: HLIT), the worldwide leader in virtualized
broadband and video delivery solutions, enables media companies and
service providers to deliver ultra-high-quality video streaming and
broadcast services to consumers globally. The company
revolutionized broadband networking via the industry's first
virtualized broadband solution, enabling cable operators to more
flexibly deploy gigabit internet service to consumers' homes and
mobile devices. Whether simplifying OTT video delivery via
innovative cloud and software platforms, or powering the delivery
of gigabit internet cable services, Harmonic is changing the way
media companies and service providers monetize live and on-demand
content on every screen. More information is available
at www.harmonicinc.com.
Legal Notice Regarding Forward Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, including
statements regarding Harmonic's business growth, stock repurchase
program, strategic review of the Video business, and redemption of
the 2024 Convertible Notes. These statements are based on our
current expectations and beliefs and are subject to risks and
uncertainties, including, but not limited to, the fact that stock
repurchases may not be conducted in the timeframe or in the manner
Harmonic expects, or at all; that the strategic review of the Video
business may not result in any transaction; and that our growth
plan may not succeed within the timeframe or to the level that
Harmonic expects due to the risks and uncertainties more fully
described in Harmonic's filings with the Securities and
Exchange Commission, including its Annual Report on Form 10-K for
the year ended Dec. 31, 2022, its Quarterly Reports on Form
10-Q and its Current Reports on Form 8-K. The forward-looking
statements in this press release are based on information available
to Harmonic as of the date hereof, and Harmonic disclaims any
obligation to update any forward-looking statements.
Harmonic, the Harmonic logo and other Harmonic marks are owned
by Harmonic Inc. or its affiliates. All other trademarks
referenced herein are the property of their respective
owners.
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SOURCE Harmonic Inc.