Comtech Telecom Amends Credit Agreements; $10M Term Loan Prepayments

What Happened

• On July 30, 2026 Comtech Telecommunications Corp. entered into Amendment No. 5 to its senior Credit Agreement (with TCW Asset Management as administrative agent and Wingspire Capital as revolving agent) and Amendment No. 4 to its Subordinated Credit Agreement (with U.S. Bank Trust Company as subordinated agent). These amendments (together, the Amended Credit Agreements) (i) waive any excess cash‑flow prepayment for the fiscal year ended July 31, 2026, and (ii) provide technical terms governing application of a $10.0 million advance payment received under a Securities Purchase Agreement dated June 14, 2026 (the “Advanced Payment”).
• The amendments allocate the $10.0 million Advanced Payment between the credit facilities (65% to the senior facility, 35% to the subordinated facility). Also on July 30, 2026 the company amended lender warrants to expand a Put Right so warrant holders can require the company to repurchase up to 50% of their warrants in certain transactions.
• In connection with these changes, Comtech made voluntary prepayments on July 31, 2026 of $6.5 million toward the term loan under the senior facility and $3.5 million toward the priority term loan under the subordinated facility. The $6.5 million was in addition to $1.0 million of scheduled principal repaid the same day. Comtech had repaid its revolving loan balance in May 2026, and that facility remains undrawn.

Key Details

• Advanced Payment: $10.0 million received under Securities Purchase Agreement (June 14, 2026); split 65% senior / 35% subordinated.
• Voluntary prepayments (July 31, 2026): $6.5M to senior term loan; $3.5M to subordinated priority term loan; plus $1.0M scheduled principal repaid same day.
• Waiver: excess cash‑flow prepayment for fiscal year ended July 31, 2026 is waived.
• Warrant change: lender warrants amended to give warrant holders a Put Right on certain transactions to force repurchase of up to 50% of their warrants; repurchase price = 90% of the 30‑day VWAP prior to repurchase date.

Why It Matters

• These amendments and prepayments reduce Comtech’s outstanding term‑loan balances and reallocate the $10M advance to lower senior and subordinated debt, which can reduce leverage and future interest costs. The excess cash‑flow waiver eases a near‑term cash obligation for the fiscal year ended July 31, 2026.
• The warrant amendment changes potential dilution and liquidity dynamics by allowing some warrant holders to require the company to buy back up to half of their warrants for cash at a formula price (90% of 30‑day VWAP). Investors should note both the reduced debt and the altered warrant repurchase exposure when assessing capitalization and dilution.