RingCentral expands credit facility to $1.24 billion

RingCentral Inc. (NYSE: RNG) announced an expansion and extension of its existing credit agreement to $1.24 billion, with $930 million remaining undrawn. The transaction was led by Bank of America and JPMorgan, with participation from Wells Fargo, Goldman Sachs, Morgan Stanley, and Mizuho.

The company plans to use proceeds primarily to address its $609 million convertible notes due in March 2026 and to reduce borrowing costs through refinancing other outstanding debt.

The restated credit agreement increases the undrawn delayed draw term loan facility from $350 million to $650 million and expands the undrawn revolving credit facility from $225 million to $280 million. Interest rates for the entire credit facility have been reduced, including the drawn $310 million term loan. Maturities have been extended to 2030.

"With this additional capacity, we intend on fully addressing our 2026 Convertible Notes," said Vaibhav Agarwal, Chief Financial Officer. "Following this transaction, we expect to have no further debt maturities until 2030."

The refinancing follows recent credit rating upgrades from Fitch Ratings and Moody's. RingCentral stated the transaction maintains its current leverage profile while providing financial flexibility for debt reduction, stock repurchases, and innovation investments.

RingCentral provides AI-powered business communications and contact center solutions. The information is based on a company press release.

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