SUBSEQUENT EVENT

Under the Term Loan Credit Agreement, Ciena had two existing term loan tranches, the 2019 Term Loan, with an outstanding aggregate principal amount of $244.4 million, and the 2021 Term Loan, with an outstanding aggregate principal amount of $248.8 million (together, the “Existing Term Loans”).

Following the end of our first quarter of fiscal 2017, on January 30, 2017, Ciena, as borrower, and Ciena Communications, Inc. and Ciena Government Solutions, Inc., as guarantors, entered into an Omnibus Refinancing Amendment to the Credit Agreement, Security Agreement and Pledge Agreement with the lenders party thereto and the administrative agent (the “Refinancing Agreement”), pursuant to which Ciena refinanced the Existing Term Loans into a single term loan with an aggregate principal amount of $400 million maturing on January 30, 2022 (the “2022 Term Loan”). In connection with the transaction, Ciena repaid $93.1 million of outstanding principal under the Existing Term Loans, and the remaining balances under the Existing Term Loans were refinanced and replaced by the 2022 Term Loan. The Refinancing Agreement amends the Term Loan Credit Agreement and provides that the 2022 Term Loan will, among other things:


•	mature on January 30, 2022;


•	amortize in equal quarterly installments in aggregate amounts equal to 0.25% of the principal amount of the 2022 Term Loan as of January 30, 2017, with the balance payable at maturity;


•	be subject to mandatory prepayment on the same basis as the Existing Term Loans under the Term Loan Credit Agreement;


•	bear interest, at Ciena’s election, at a per annum rate equal to (a) LIBOR (subject to a floor of 0.75%) plus an applicable margin of 2.50%, or (b) a base rate (subject to a floor of 1.75%) plus an applicable margin of 1.50%; and


•	be repayable at any time at Ciena's election, provided that repayment of the 2022 Term Loan with proceeds of certain indebtedness prior to July 30, 2017 will require a prepayment premium of 1% of the aggregate principal amount of such prepayment.

Except as amended by the Refinancing Agreement, the remaining terms of the Term Loan Credit Agreement remain in full force and effect.