Comtech Announces Improved Capital Structure with US$ 40 million Infusion

Chandler,Ariz., March 3, 2025– Comtech Telecommunications Corp. (NASDAQ: CMTL)  today announced an amendment to its senior secured credit agreement that cures the covenant breaches as of January 31, 2025, that the company had disclosed it anticipated in its earnings release, 10Q and conference call on January 13, 2025. The agreement also provides for improved financial flexibility with the suspension of the fixed charge coverage ratio and the net leverage ratio covenants in the senior secured credit agreement such that the next test will be for the quarter ending on October 31, 2025. Furthermore, the agreement reduces the interest rate on the senior secured loans.

These remedies and improvements in the senior secured credit facility were enabled by a new capital infusion of US$ 40 million, of which US$ 27.3 million is being used to prepay the senior secured term loan and a US$ 3.2 million reduction in the revolving credit facility, with a waiver of the prepayment penalties that would have been owed in accordance with the terms of the credit agreement.

The new US$ 40 million investment is being made by existing holders of the company’s convertible preferred stock and subordinated debt on the same terms and conditions as the prior investment in subordinated debt.

“Today’s announcement is a testament to the confidence that our lenders and preferred stockholders have in our recently announced comprehensive transformation plan. We greatly appreciate their support as we reset the trajectory of Comtech with an improved capital structure,” said Ken Traub, President and Chief Executive Officer.

The foregoing description of the amendment to the senior secured credit agreement and the subordinated debt is not complete and is qualified in its entirety by the terms of the underlying documents, copies of which will be made available in the Company’s filings with the Securities and Exchange Commission.

Additional information can be found in the Company’s Current Report on Form 8-K filed with the SEC today and available on Comtech’s investor relations website at https://comtech.com/investors/