ADTRAN signed a $350m JPMorgan-led credit facility on July 21, the day before it warned on the quarter

ADTRAN Holdings has a new lender. The Huntsville, Alabama networking equipment maker entered into a credit agreement dated July 21, 2026 with JPMorgan Chase Bank as administrative agent for its US borrower and J.P. Morgan SE as administrative agent for its German borrower, and disclosed the agreement on July 23.

The facility allows borrowings of up to $350.0m in aggregate principal, of which no more than $50.0m may be drawn by Adtran Networks SE, the European stock corporation that is the German borrower. It replaces the credit agreement the borrowers entered into on July 18, 2022 with Wells Fargo Bank as administrative agent. ADTRAN Holdings is the guarantor, and the filing lists a guarantee and collateral agreement and a share pledge agreement alongside the credit agreement itself. Proceeds are for general corporate purposes.

Pricing runs off a term benchmark rate or a base rate, each subject to a floor of zero. Margins range from 2.25 to 3.25 percent on term benchmark loans and from 1.25 to 2.25 percent on base rate loans, in each case set by the consolidated total net leverage ratio of the company and its subsidiaries. Unutilised revolving commitments carry a fee of 0.25 percent. Default interest runs 2.00 percent above the otherwise applicable rate. The agreement caps the consolidated senior secured net leverage ratio at 3.25 to 1.0, tested on the last day of each fiscal quarter and subject to certain exceptions.

The dates are worth reading in order. The credit agreement is dated July 21. On July 22 ADTRAN disclosed preliminary second-quarter revenue of $280.0m to $282.0m, below its own guidance range of $283.0m to $303.0m, and preliminary non-GAAP diluted earnings of 3 to 5 cents a share. The announcement of the facility came on July 23. Chairman and chief executive Tom Stanton said the refinancing "extends our maturity profile" and improves the company's financial flexibility.