Zebra Technologies refinances debt
LINCOLNSHIRE -- Zebra Technologies Corp. announced actions to refinance its debt and expand liquidity. The company closed on a $3.25 billion secured credit facility that matures in May 2027, Zebra said.
This new credit and lending includes a $1.75 billion term loan, and a $1.5 billion revolving credit facility with a $50 million payment to Zebra as of the closing date earlier this week. In conjunction, the company has retired its $875 million term loan and a $1 billion revolving facility, which had maturity dates of August 2024.
Proceeds from the new term loan are also expected to fund the pending $875 million acquisition of Matrox Imaging, the company said.
"We have significantly increased our available borrowing capacity to optimize our capital structure and align with our growing business. Our new credit facility provides us ample flexibility for organic and inorganic investment in our business, as well as share repurchases through our recently announced $1 billion incremental board authorization," said Chief Financial Officer Nathan Winters.