SUWANEE, Ga., June 2, 2014 /PRNewswire/ -- ARRIS Group, Inc., (NASDAQ: ARRS) a global telecommunications technology leader, today announced that on Thursday, May 29, 2014, it completed an optional principal prepayment of its senior secured credit facilities in the amount of $150 million. As a result of the prepayment, the Company's total outstanding indebtedness at face value as of May 31, 2014 was $1,589 million, comprised of $1,045 million under the Term Loan A and $544 million under the Term Loan B.
Since acquiring the Motorola Home business from Google on April 17, 2013, ARRIS has successfully deleveraged its balance sheet through the redemption of convertible notes and through mandatory and optional payments of its senior secured credit facilities totaling $568 million. At the end of the fourth quarter 2013 the Company's leverage ratio declined to 2.77, and as a result pursuant to the terms of the Company's credit facilities, the interest rate on the Term Loan A debt declined by 25 basis points.
"This prepayment demonstrates our confidence in the Company's performance and the progress we have made over the past year. ARRIS is committed to its capital allocation strategy and will effectively use excess cash to enhance shareholder value," David Potts, ARRIS EVP and CFO, said.
ARRIS is a global innovator in IP, video and broadband technology. We have continually worked with our customers to transform the experience of entertainment and communications for millions of people across the world. The people of ARRIS are dedicated to the success of our customers, bringing a passion for invention that has fueled our 60-year history: We created digital TV, delivered the first wireless broadband gateway and are pioneering the standards and pathways for tomorrow's personalized, Ultra HD, multiscreen, and cloud services. We are dedicated to meeting today's challenges and preparing for the tasks the future holds. Collaborating with our customers, ARRIS will continue to solve the most pressing challenges of 21st century communications. Together, we are inventing the future. For more information: www.arrisi.com.
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SOURCE ARRIS Group, Inc.