Mavenir Reduces $1.3 Billion Debt, Stakes Clever Money on AI-driven Telecommunications Infrastructure
Mavenir, a leading cloud-native network infrastructure provider, has announced a debt recapitalization worth over $1.3 billion. This deal aims to stabilize the company's finances and pivot its strategic focus.
The transaction, led by Mavenir's majority investor Siris, positions the company to move forward with a more stable capital structure. This will substantially reduce Mavenir's net leverage and increase its liquidity.
The banks participating in the financing of Mavenir's transaction process include BNP Paribas, Citibank, Goldman Sachs, J.P. Morgan, and Morgan Stanley. These financial institutions have provided $300 million in new senior financings to Mavenir.
Siris will remain the controlling shareholder, with key existing lenders also participating in the deal. The transaction includes a smaller subordinated facility provided by Siris and others.
Mavenir's President and CEO, Pardeep Kohli, stated that the strengthened balance sheet will help deliver a comprehensive, end-to-end, AI-native telco stack. This will set Mavenir up for profitable growth.
Mavenir plans to double down on its Mobile Core segment, a suite of software applications for voice, messaging, and data services. The company will refine its investment in Open RAN, focusing on 4G and 5G software while retaining its hardware IP to support current customers.
Mavenir continues to build upon its leading position in the software industry. The company will also accelerate investment in AI capabilities across its business units, driving network automation and unlocking new revenue streams.
Frank Baker, Co-Founder and Managing Partner of Siris, expressed pride in Mavenir's long-standing partnership. Hubert de Pesquidoux, Mavenir Executive Chair and Siris Executive Partner, emphasized the importance of strengthening the company's capital structure.
No new statements about the company's plans for 4G and 5G software or hardware IP were made. Similarly, no new information about the company's expected growth or profitability was provided.
The transaction is expected to close in approximately 4-6 weeks. Mavenir will continue to focus on its Mobile Core segment, Open RAN, and AI capabilities as it moves forward with its debt recapitalization.
