RingCentral, Inc. announced on September 12, 2025, the expansion and extension of its existing credit agreement, now totaling $1.24 billion, with $930 million remaining undrawn. This proactive financial move aims to enhance the company's financial flexibility and secure more favorable terms.
The primary use of the proceeds will be to settle the outstanding $609 million Convertible Notes due in March 2026. This action effectively pushes out the next remaining debt maturities to 2030, significantly improving the company's debt maturity profile and reducing near-term financial obligations.
Vaibhav Agarwal, Chief Financial Officer of RingCentral, stated that this refinancing maintains the company's current leverage profile. With strong free cash flows, RingCentral is well-positioned to execute on its capital allocation priorities, including further debt reduction, share repurchases, and investments in innovation. This transaction also follows recent credit rating upgrades from both Fitch Ratings and Moody’s, underscoring the continued strength of its financial position.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.