2013-10-01 15:06:01 -
Zhone Investor Relations: Zhone Public Relations:
Tel: +1 510.777.7013 Tel: +1 404-460-8578
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Oakland, CA - October 1, 2013 - Zhone Technologies, Inc. (NASDAQ: ZHNE), a
global leader in FTTx network access solutions, today announced that on
September 30, 2013 the company entered into an amendment of its existing senior
secured revolving credit facility with Wells Fargo Capital Finance, part of
Wells Fargo & Company (NYSE: WFC) to extend the maturity date of the facility
from March 13, 2014 to March 31, 2016. In addition, the
amendment amends the
letters of credit sublimits in the facility and reduces the interest rate margin
from 3.5 percent to 3.0 percent (with a provision for further decreases in the
event that Zhone attains specified performance metrics). Under the facility,
Zhone may borrow up to $25.0 million, with the amount Zhone is able to borrow
based on eligible accounts receivable.
"The extension of our credit facility ensures our ability to develop leading
technologies for our customers," stated Kirk Misaka, chief financial officer of
Zhone Technologies. "Wells Fargo Capital Finance continues to be an excellent
partner in developing a financing solution that supports our continued growth
and enables us to meet the changing needs of our business."
"We are very pleased to continue our relationship with Zhone Technologies,"
said Gary Harrigian, senior vice president of Wells Fargo Capital Finance. "The
amended credit facility will allow them the financial flexibility to make
strategic business decisions. It's important to Wells Fargo Capital Finance to
support our clients as they continue to grow."
About Zhone Technologies
Zhone Technologies, Inc. (NASDAQ: ZHNE) is a global leader in all IP multi-
service access solutions, serving more than 750 of the world's most innovative
network operators. IP Zhone enables service providers to build the network of
the future.today, supporting end-to-end Voice, Data, Entertainment Social Media,
Business, Mobile Backhaul and Mobility service. Zhone is committed to building
the fastest and highest quality All IP Multi-Service solution for its customers.
Zhone is headquartered in California and its products are manufactured in the
USA in a facility that is emission, waste-water and CFC free.
Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone
Technologies, Inc. Other brand and product names are trademarks of their
respective holders. Specifications, products, and/or products names are all
subject to change without notice.
About Wells Fargo Capital Finance
Wells Fargo Capital Finance is the trade name for certain asset-based lending,
accounts receivable and purchase order finance services of Wells Fargo & Company
and its subsidiaries, and provides traditional asset-based lending, specialized
senior secured financing, accounts receivable financing, purchase order
financing and channel finance to companies across the United States and
internationally. Dedicated teams within Wells Fargo Capital Finance provide
financing solutions for companies in specific industries such as retail,
software publishing and high-technology, commercial finance, staffing,
government contracting and others. For more information, visit
This press release contains forward-looking statements that are subject to the
safe harbors created under the Securities Act of 1933 and the Securities
Exchange Act of 1934. Words such as "anticipate," "believe,"
"could," "estimate," "expect," "goal,"
"intend," "may," "plan," "project,"
"seek," "should," "target," "will," "would,"
variations of such words, and
similar expressions are intended to identify forward-looking statements. In
addition, forward-looking statements include, among others, statements that
refer to future financial performance, growth and development. Readers are
cautioned that actual results could differ materially from those expressed in or
contemplated by the forward-looking statements. Factors that could cause actual
results to differ include, but are not limited to, commercial acceptance of
Zhone's products; intense competition in the communications equipment market;
Zhone's ability to execute on its strategy and operating plans; and economic
conditions specific to the communications, networking, internet and related
industries. In addition, please refer to the risk factors contained in Zhone's
SEC filings available at www.sec.gov
, including without limitation,
Zhone's annual report on Form 10-K for the year ended December 31, 2012 and the
Company's quarterly report on Form 10-Q for the quarter ended March 31, 2013
and June 30, 2013. Readers are cautioned not to place undue reliance on any
forward-looking statements, which speak only as of the date on which they are
made. Zhone's undertakes no obligation to update or revise any forward-looking
statements for any reason..
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originality of the information contained therein.
Source: Zhone Technologies, Inc via Thomson Reuters ONE