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RingCentral, Inc., a global leader in AI-powered business communications, announced the expansion and extension of its credit agreement on September 12, 2025. The Restated Credit Agreement, led by Bank of America and JPMorgan with participation from Wells Fargo, Goldman Sachs, Morgan Stanley, and Mizuho, increases the facility to $1.24 billion, with $930 million undrawn, to primarily settle $609 million in Convertible Notes due in March 2026 and reduce borrowing costs.
Expanded Facility: $1.24 billion credit facility, with $930 million undrawn.
Primary Use: Settle $609 million 2026 Convertible Notes and refinance other debt.
Key Terms:
Undrawn delayed draw term loan increased from $350M to $650M.
Undrawn revolving credit facility increased from $225M to $280M.
Interest rates reduced across the facility, including $310M drawn term loan.
Maturities extended to 2030.
Stock (RNG): Closed at $31.07, with a market cap of $2.77 billion (see finance card above).
Financial Position: Supported by recent Fitch and Moody’s credit rating upgrades.
Source: Business Wire, September 12, 2025.
The Restated Credit Agreement enhances RingCentral’s financial flexibility, fully addressing the 2026 Convertible Notes and pushing debt maturities to 2030. “This is a proactive step to enhance our financial flexibility while securing more favorable terms,” said Vaibhav Agarwal, Chief Financial Officer. The transaction maintains RingCentral’s leverage profile, leveraging strong free cash flows ($144M in Q2 2025) to support debt reduction, stock repurchasing, and innovation investments. Recent credit rating upgrades from Fitch and Moody’s reflect confidence in RingCentral’s financial stability.
RingCentral’s stock (RNG) closed at $31.07 on September 12, 2025, with a year-over-year increase of 1.8% but down 26.4% from its yearly high of $42.19 (see finance card above). Q2 2025 results reported $620M in revenue (5% YoY growth) and $2.59B in ARR, driven by AI solutions like RingCX and AI Receptionist. The company has repurchased significant portions of its 2025 and 2026 Convertible Notes in prior transactions, reducing outstanding amounts to $161M and $609M, respectively.
The expanded credit facility positions RingCentral to manage debt efficiently while investing in AI-driven products like RingSense and RingCX, which saw 1,200+ customers by Q2 2025. Analyst price targets average $33.54, suggesting potential upside, though concerns linger about UCaaS growth and competition from Microsoft and Zoom.
RingCentral (NYSE: RNG) provides AI-powered cloud communications, contact center, and video solutions, serving hundreds of thousands of customers globally. Its platform, including RingEX and RingCX, leverages conversation intelligence to enhance business outcomes, backed by decades of expertise in secure cloud communications. Visit ringcentral.com for more.
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