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Debt Refinancing Highlights:
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Established 5-year $3.25 billion senior secured credit score facility consisting of a $1.5 billion revolving credit score facility and $1.75 billion time period mortgage
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Retired $1.0 billion revolving credit score facility and $0.9 billion time period mortgage
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Favorable pricing on new facility by 25 foundation factors
LINCOLNSHIRE, Sick., Could 26, 2022–(BUSINESS WIRE)–Zebra Applied sciences Company (NASDAQ: ZBRA), an innovator on the fringe of the enterprise with options and companions that allow companies to achieve a efficiency edge, at the moment introduced actions to refinance its debt and develop liquidity.
The corporate closed yesterday on a $3.25 billion senior secured credit score facility maturing Could 2027 with a decrease pricing tier at SOFR + 1.00% that escalates if the Complete Internet Leverage Ratio is larger than 1.5x. This facility features a $1.75 billion time period mortgage, and a $1.5 billion revolving credit score facility with $50 million drawn on the revolver as of shut. The corporate has retired its $875 million time period mortgage and $1.0 billion revolving facility, which had maturity dates of August 2024. Proceeds from the brand new time period mortgage are additionally anticipated to fund the pending $875 million acquisition of Matrox Imaging.
“We’ve got considerably elevated our out there borrowing capability to optimize our capital construction and align with our rising enterprise. Our new credit score facility gives us ample flexibility for natural and inorganic funding in our enterprise, in addition to share repurchases by our not too long ago introduced $1 billion incremental board authorization. Our staff was additionally capable of safe favorable phrases on our debt covenants for added capital construction flexibility, whereas lowering borrowing prices by roughly 25 foundation factors,” stated Chief Monetary Officer, Nathan Winters. “We’re comfy with the variable rate of interest construction of our debt as a consequence of our robust working money move profile and $800 million of floating-to-fixed rate of interest swaps that had been secured earlier this 12 months forward of current charge will increase.”
J.P. Morgan and Wells Fargo had been Co-Left Lead Arrangers on the structuring and syndication of the power, and Zebra engaged Proskauer as Counsel for the transaction.
SAFE HARBOR STATEMENT
Statements made on this press launch which aren’t statements of historic reality are forward-looking statements and are topic to the protected harbor provisions created by the Non-public Securities Litigation Reform Act of 1995. Precise outcomes could differ from these expressed or implied within the firm’s forward-looking statements. Zebra could elect to replace forward-looking statements however expressly disclaims any obligation to take action, even when the corporate’s estimates change. These forward-looking statements are based mostly on present expectations, forecasts and assumptions and are topic to the dangers and uncertainties inherent in Zebra’s trade, market situations, basic home and worldwide financial situations, and different components. These components embody buyer acceptance of Zebra’s choices and rivals’ choices, and the potential results of rising applied sciences and adjustments in buyer necessities. The impact of world market situations and the supply of credit score and capital markets volatility could have hostile results on Zebra, its suppliers and its prospects. As well as, pure disasters, man-made disasters, public well being points (together with pandemics), and cybersecurity incidents could have adverse results on our enterprise and outcomes of operations. Our means to buy enough supplies, elements, and elements in addition to our means to supply providers and software program to satisfy buyer demand may negatively impression our outcomes of operations and buyer relationships. Income and profitability will probably be affected by Zebra’s means to manage manufacturing and working prices. Due to its debt, rates of interest and monetary market situations may additionally have an effect on outcomes. International trade charges, customs duties and commerce insurance policies could impact monetary outcomes due to the big share of our worldwide gross sales. The impacts of adjustments in international and home governmental insurance policies, rules, or legal guidelines, in addition to the end result of litigation or tax issues by which Zebra could also be concerned are different components. The success of integrating acquisitions may additionally have an effect on profitability, reported outcomes and the corporate’s aggressive place in its trade. These and different components may have an hostile impact on Zebra’s gross sales, gross revenue margins and outcomes of operations and enhance the volatility of our monetary outcomes. Descriptions of the dangers, uncertainties and different components that would have an effect on the corporate’s future operations and outcomes may be present in Zebra’s filings with the Securities and Change Fee. Specifically, please check with Zebra’s newest submitting of its Kind 10-Ok and Kind 10-Q. This press launch contains sure non-GAAP monetary measures and we check with the reconciliations to the comparable GAAP monetary measures and associated info.
ABOUT ZEBRA TECHNOLOGIES
Zebra (NASDAQ: ZBRA) empowers organizations to thrive within the on-demand economic system by making each front-line employee and asset on the edge seen, linked and totally optimized. With an ecosystem of greater than 10,000 companions throughout greater than 100 international locations, Zebra serves prospects of all sizes – together with 94% of the Fortune 100 – with an award-winning portfolio of {hardware}, software program, providers and options that digitize and automate workflows. Provide chains are extra dynamic, prospects and sufferers are higher served, and employees are extra engaged after they make the most of Zebra improvements that assist them sense, analyze and act in actual time. Zebra not too long ago expanded its industrial automation portfolio with its Fetch Robotics acquisition and elevated its machine imaginative and prescient and AI software program capabilities with the acquisitions of Adaptive Imaginative and prescient and antuit.ai. Zebra is #25 on Newsweek’s inaugural record of America’s 100 Most Beloved Workplaces and #79 on Forbes’ record of America’s 500 Greatest Midsize Employers. Study extra at www.zebra.com or join information alerts. Observe zebra.com or join information alerts. Observe Zebra’s Your Edge weblog, LinkedIn, Twitter and Fb, and take a look at our Story Hub: Zebra Views
ZEBRA and the stylized Zebra head are emblems of Zebra Applied sciences Company, registered in lots of jurisdictions worldwide. All different emblems are the property of their respective homeowners. ©2022 Zebra Applied sciences Company and/or its associates. All rights reserved.
View supply model on businesswire.com: https://www.businesswire.com/information/house/20220526005058/en/
Contacts
Investor Contact:
Michael Steele, CFA, IRC
Vice President, Investor Relations
Cellphone: + 1 847 793 6707
msteele@zebra.com
Media Contact:
Therese Van Ryne
Senior Director, Exterior Communications
Cellphone: + 1 847 370 2317
therese.vanryne@zebra.com
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