Mavenir Systems completes comprehensive recapitalization

Mavenir Systems completes comprehensive recapitalization

Mavenir Systems, a prominent player in the telecommunications industry, has successfully completed a comprehensive recapitalization, significantly reducing its debt burden. The company announced that it has eliminated more than $1.3 billion of existing debt through this recapitalization process [1].

The recapitalization involved securing $300 million of new senior financing, with additional subordinated financing provided by Siris Capital and participating lenders. This financial restructuring leaves Siris Capital as the controlling shareholder of Mavenir Systems [2].

The move comes after Mavenir Systems faced challenges with its debt pile, which had grown due to investments in developing Open RAN (Radio Access Network) technology. The company has been a strong advocate of Open RAN, which aims to diversify the vendor supply chain. However, the Open RAN market has been competitive, with vendors like Ericsson and Samsung securing major contracts [2].

Mavenir Systems' CEO, Pardeep Kohli, noted that the company is now better positioned to continue innovating for its global customer base, thanks to the strengthened financial foundation. Hubert de Pesquidoux, Siris executive partner and executive chair of Mavenir, expressed confidence in the company's mission and the continued support of Siris and its lender partners [2].

The recapitalization allows Mavenir Systems to refocus its Open RAN investments on 4G and 5G software, rather than hardware. The company aims to maintain its existing customer support while doubling down on its software expertise and domain knowledge in both Core and Open RAN segments [2].

References:
[1] https://news.bloomberglaw.com/bankruptcy-law/mavenir-systems-completes-recapitalization-cutting-1-3b-debt
[2] https://www.datacenterdynamics.com/en/news/mavenir-completes-recapitalization-wipes-off-more-than-13bn-of-debt/