Ribbon says does not expect SVB closing to have significant impact on operations

In a regulatory filing, Ribbon Communications (RBBN) stated that the company is monitoring the situation with respect to the closure of Silicon Valley Bank (SIVB) on March 10 by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation as receiver. "SVB was one of the lenders under the company’s Senior Secured Credit Facilities Credit Agreement, as amended, and the company maintained some deposit accounts with SVB. The company withdrew funds on deposit with SVB as of Thursday, March 9, 2023, however, additional payments, approximately $4 million, from the company’s customers were deposited into the company’s accounts at SVB subsequent to that withdrawal. According to the FDIC, all insured depositors of SVB will have full access to their deposits starting today, March 13, 2023. Ribbon does not expect the closing of SVB to have a significant impact on its operations. The company’s cash and cash equivalents are distributed across multiple large financial institutions. While the company’s remaining deposits with SVB are largely uninsured, given statements by the FDIC, the company expects to recover its remaining cash on deposit at SVB. Further, the company believes that the other lenders under the Credit Facility will be able to fund any requested draws the company may make in the future from the revolving credit facility included under the Credit Facility. As a result, the company continues to believe that its existing cash and cash equivalents balance, cash flow from operations and funds available under its Credit Facility will be sufficient to meet its working capital, capital expenditures, and material cash requirements from known contractual obligations for the next twelve months and beyond," the filing stated.