$Ribbon Communications (RBBN.US)$ Ribbon Communications Inc. Announces Closing of New $385 Million Senior Secured Credit Facility Ribbon Communications (Nasdaq: RBBN) announced the closure of a new $385 million senior secured credit facility, including a $350 million term loan and a $35 million revolving credit facility. The proceeds will be used to repay existing debt, redeem Series A Preferred Stock, and cover related fees and expenses, with remaining funds allocated for working capital and...
Ribbon Communications' revenue decline and lack of profit may have led to a 17% annual drop in share price. If future growth is expected, this could be the company's low point. Investors faced a tough year with a 22% total loss.
Despite Ribbon Communications' recent gains, its lower-than-industry-average P/S may indicate skepticism about the company's growth forecasts. Observers note that potential risks might be putting substantial pressure on the P/S ratio, indicating the market's continued hesitations even with strong growth forecasts.
Ribbon Communications' liabilities may exceed its market cap, posing potential risk for shareholders. The company's EBIT loss of $19 million over the last year also intensifies the risk associated with the stock.
The company foresees a robust year-end with growth anticipated in IP Optical Networks and Cloud & Edge segments, and positivity around Non-GAAP Adjusted EBITDA in Q4. The combined effect of sustained sales growth and bettering margins will likely improve consolidated profitability for the whole year, despite geopolitical challenges.
Ribbon Communications Stock Forum
Ribbon Communications Inc. Announces Closing of New $385 Million Senior Secured Credit Facility
Ribbon Communications (Nasdaq: RBBN) announced the closure of a new $385 million senior secured credit facility, including a $350 million term loan and a $35 million revolving credit facility. The proceeds will be used to repay existing debt, redeem Series A Preferred Stock, and cover related fees and expenses, with remaining funds allocated for working capital and...
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