PARAMUS, New Jersey, March 14, 2013 /PRNewswire/ --
Ceragon Networks Ltd. (NASDAQ: CRNT), the #1 wireless backhaul specialist, today announced the closing of a three year $73.5 million of secured credit loans with an additional credit of up to $40.2 million available for bank guarantees, from a group of lenders led by Bank Hapoalim B.M.. The loans under the credit facility are expected to be used by Ceragon to manage fluctuating working capital needs, mainly related to the deployment of its equipment at tier 1 operators and for general corporate purposes.
The new credit facility will bear floating interest at a base rate plus an applicable spread of up to 3% per annum (3 month Libor plus 3.3% as of March 14). The new credit facility is secured by a floating charge over all the Company's assets and a fixed lien over its bank accounts at the lending institutions.
The credit facility replaces all of the Company's existing credit facilities, including the loan agreement with Bank Hapoalim B.M. entered into in 2011, and other short term credit facilities with other banks. At December 31, 2012, Ceragon had $26.8 million of long term debt, including current maturities, as well as $17 million drawn down from the previous credit facilities, which totaled $40 million."We are pleased with the successful completion of this credit facility, which provides several advantages over our prior credit agreements. The new credit facility consists of amounts larger than the previously available credit line, is fully-committed for three years, with financial covenants that are less stringent and bears interest at approximately the same rate," said Aviram Steinhart, EVP and CFO of Ceragon. "In addition, under the terms of the agreement, the amounts we repay on the longer term loan taken in relation to the Nera acquisition, will immediately become available credit for our working capital needs under the new facility. We believe this will provide the necessary flexibility to successfully manage the fluctuations in working capital inherent in our business model." About Ceragon Networks Ltd.