14 April 2020
Infinera enters into agreement with Oaktree; appoints Amy Rice to board
Infinera Corp of Sunnyvale, CA, USA, a vertically integrated manufacturer of digital optical network systems incorporating its own indium phosphide (InP)-based photonic integrated circuits (PICs), says that Amy H. Rice, a managing director with Oaktree Capital Management LP, has joined its board of directors. Rice is a managing director with Oaktree’s Special Situations Group and has been with the firm since 2009. Prior to joining Oaktree, she spent two years as an associate at Lindsay Goldberg, LLC and, before that, she spent two years as an analyst in the Leveraged Finance group at Deutsche Bank. She has an A.B. from Harvard College and an MBA from The Wharton School of the University of Pennsylvania.
In addition, Infinera will further strengthen its board by appointing an additional independent director, who will be chosen by Infinera in collaboration with Oaktree in the near future. Through its affiliated investment funds, Oaktree beneficially owns about 14% of Infinera’s common stock.
“Since our acquisition of Coriant from investment funds managed by Oaktree, we have benefited from Oaktree’s collaborative approach and we will continue to build on this relationship,” says Infinera’s chairman Kambiz Y. Hooshmand. “Amy’s background provides an excellent skill set that complements our board of directors,” he adds. “We have a diverse board of directors focused on driving sustained long-term stockholder value. The additions of Amy and another new independent director will help refresh and enhance our board,” Hooshmand continues.
“Although the macro environment is currently challenging, we remain excited about the year ahead and the opportunities to strengthen our position as an at-scale optical networking leader with a differentiated innovation pipeline,” says CEO Tom Fallon. “We have taken the necessary steps to ensure there is cash on the balance sheet and appropriate liquidity in these uncertain economic times and appreciate the confidence that Oaktree has shown in our prospects,” he adds.
“We believe Infinera’s technological innovations provide significant opportunity ahead,” Rice comments. “Additionally, we are pleased with management’s progress in the last year as they have integrated Coriant, reduced costs through synergies in excess of plans and established a business platform that is well aligned to the fastest-growing segments in the optical space.”
Infinera and Oaktree entered into a customary agreement that, among other things, obligates Oaktree to vote all of its shares in favor of each of Infinera’s nominees for director, including Rice, at Infinera’s upcoming annual meeting.