- Comtech Telecommunications Corp. (CMTL, Financial) revises senior secured credit agreement, enhancing financial terms and flexibility.
- The company secures an additional $35 million capital infusion to bolster liquidity.
- Lenders have waived prepayment fees and deferred previous amortization obligations.
Comtech Telecommunications Corp. (CMTL), a leader in communications technology, announced key amendments to its senior secured credit agreement on July 21, 2025. These changes are set to improve the company's financial flexibility and liquidity, critical for advancing its business strategies.
Under the new agreement terms, Comtech benefits from a financial covenant holiday, with the next test of financial covenants deferred until the fiscal quarter ending January 31, 2027. This strategic move allows Comtech to focus on its operational goals without immediate financial covenant pressures.
Additionally, the company has secured a $35 million capital infusion from an existing holder of its convertible preferred stock and subordinated debt. This subordinated debt carries no make whole provision or cash interest requirements, aligning with the interest terms of the company's senior secured debt.
Comtech's Chairman, President, and CEO, Ken Traub, stated that these agreements are a testament to the confidence lenders and stockholders have in the company's transformation plan. This bolstered financial flexibility supports Comtech's goal of leveraging opportunities in next-generation public safety and mission-critical communications technologies.
The net proceeds from the investment will be directed towards prepaying senior secured debt, further enhancing the company's financial standing. Complete details of the amendments will be accessible in the company's SEC filings.
For more about Comtech Telecommunications Corp. and its innovative communication solutions, visit comtech.com/investors.
