Harmonic (HLIT) Augments Liquidity With New Credit Facility
Harmonic Inc. HLIT recently inked an agreement with a consortium of leading financial institutions for a new credit facility worth $160 million. The credit facility was provided by a lending syndicate led by Citibank, N.A., JPMorgan Chase Bank, N.A. and Wells Fargo Securities, LLC, and includes HSBC and MUFG as additional lenders.
The credit agreement replaces the existing $25 million line of credit with JPMorgan Chase Bank, N.A. The improved credit facility includes a $120 million secured revolving loan facility, a $40 million secured delayed draw term loan facility and an option for an additional $100 million under an accordion feature.
The facility augments Harmonic’s liquidity and enables it to better focus on its multi-year growth plan. In addition, it empowers the company with greater financial flexibility to consider options such as the redemption of 2024 Convertible Notes and share buybacks under its existing share repurchase program.
Headquartered in San Jose, CA, Harmonic provides video delivery software, products, system solutions and services worldwide. With more than three decades of experience, it has revolutionized cable access networking via the industry's first virtualized cable access solution, enabling cable operators to deploy gigabit Internet service to consumers' homes and mobile devices more flexibly.
The stock has lost 5.5% over the past year against the industry’s rise of 44.4%.
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Zacks Rank & Key Picks
Harmonic currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
United States Cellular Corporation USM, sporting a Zacks Rank #1, is the fourth largest full-service wireless carrier in the United States. The company provides a range of wireless products and services, and a high-quality network to increase the competitiveness of local businesses and improve the efficiency of government operations.
U.S. Cellular has taken concrete steps to accelerate subscriber additions and improve churn management. The company aims to offer the best wireless experience to customers by providing superior quality network and national coverage. It is well-positioned to support the investment required for network enhancements, including the deployment of 5G technology. The company is well-positioned for continued demand for broadband.
InterDigital, Inc. IDCC: Headquartered in Wilmington, DE, InterDigital is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks.
This Zacks Rank #1 stock has a long-term earnings growth expectation of 17.4% and has surged 122.6% over the past year. A well-established global footprint, diversified product portfolio and ability to penetrate different markets are key growth drivers for InterDigital. Apart from a strong portfolio of wireless technology solutions, the addition of technologies related to sensors, user interface and video to its offerings is likely to drive considerable value, given the massive size of the market it offers licensing technologies to.
Arista Networks, Inc. ANET, carrying a Zacks Rank #2 (Buy), is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 20.4% and delivered an earnings surprise of 12%, on average, in the trailing four quarters.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
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