Short-Term and Long-Term Debt

6 Months Ended

Apr. 30, 2019

Debt Disclosure [Abstract]

Short-Term and Long-Term Debt

SHORT-TERM AND LONG-TERM DEBT

Outstanding Term Loan Payable

2025 Term Loan

The net carrying value of Ciena’s Term Loan due September 28, 2025 (the “2025 Term Loan”) was comprised of the following for the fiscal periods indicated (in thousands):

	April 30, 2019		October 31, 2018
Term Loan Payable due September 28, 2025	$	690,429	$	693,450

Deferred debt issuance costs that were deducted from the carrying amounts of the 2025 Term Loan totaled $3.9 million at April 30, 2019 and $4.3 million at October 31, 2018. Deferred debt issuance costs are amortized using the straight-line method, which approximates the effect of the effective interest rate method, through the maturity of the 2025 Term Loan. The amortization of deferred debt issuance costs for the 2025 Term Loan is included in interest expense, and was $0.3 million during the first six months of fiscal 2019. The carrying value of the 2025 Term Loan listed above is also net of any unamortized debt discounts.    

The principal balance, unamortized debt discount, deferred debt issuance costs, net carrying value and fair value of the 2025 Term Loan were as follows as of April 30, 2019 (in thousands):

	Principal Balance		Unamortized Debt Discount			Deferred Debt Issuance Costs			Net Carrying Value		Fair Value(1)
Term Loan Payable due September 28, 2025	$	696,500	$	(2,129	)	$	(3,942	)	$	690,429	$	696,500

(1)

The 2025 Term Loan is categorized as Level 2 in the fair value hierarchy. Ciena estimated the fair value of the 2025 Term Loan using a market approach based upon observable inputs, such as current market transactions involving comparable securities.