Mavenir Cuts Over US$1.3 Bln In Debt Through Strategic Recapitalisation
KUALA LUMPUR, June 17 (Bernama) -- Mavenir, a cloud-native network infrastructure provider, and its existing investor Siris have signed a comprehensive recapitalisation agreement with Mavenir’s lenders to significantly enhance the company’s financial foundation.
The transaction will eliminate over US$1.3 billion in existing debt and provide US$300 million in new senior financing, alongside a smaller subordinated facility from Siris and participating lenders. (US$1=RM4.23)
According to a statement, the recapitalisation will improve liquidity, reduce net leverage and create a more stable capital structure, while the transaction is expected to be completed within four to six weeks.
The company scale and structure of the agreement reflect the continued confidence and commitment of Siris and its lenders. The recapitalisation will position Mavenir for long-term growth, with Siris retaining its controlling ownership and continuing as an active strategic partner.
“We have been spearheading cloud transformation in Core and Open RAN. With a strengthened balance sheet and lower leverage, we are doubling down on our software expertise and domain knowledge to deliver a comprehensive, end-to-end, AI-native telco stack,” said Mavenir President and Chief Executive Officer, Pardeep Kohli.
Meanwhile, its Executive Chair and Siris Executive Partner, Hubert de Pesquidoux said by strengthening its capital structure, the company will be better positioned to execute its strategy, invest in innovation, and deliver on commitments.
As part of its refined investment strategy, Mavenir will deepen its focus on its profitable Core segment, which includes voice, messaging, video, and data services.
The company will also refine its Open Radio Access Network (RAN) investments to prioritise software in 4G and 5G deployments while maintaining its Open RAN hardware intellectual property (IP) and supporting existing customers.
Mavenir also plans to accelerate artificial intelligence (AI) investments across its Mobile Core and Open RAN portfolios. This includes the development of autonomous networks and AI-native solutions, which are expected to open new revenue streams and strengthen Mavenir’s position as a leader in cloud-native networking technologies.
-- BERNAMA