Zebra Applied sciences Completes Complete Debt Refinancing

LINCOLNSHIRE, In poor health.–(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, as we speak 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 Whole Web 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 have now considerably elevated our obtainable borrowing capability to optimize our capital construction and align with our rising enterprise. Our new credit score facility offers us ample flexibility for natural and inorganic funding in our enterprise, in addition to share repurchases via our lately introduced $1 billion incremental board authorization. Our staff was additionally capable of safe favorable phrases on our debt covenants for extra capital construction flexibility, whereas lowering borrowing prices by roughly 25 foundation factors,” mentioned Chief Monetary Officer, Nathan Winters. “We’re snug with the variable rate of interest construction of our debt because of our sturdy working money circulate profile and $800 million of floating-to-fixed rate of interest swaps that have been secured earlier this yr forward of latest charge will increase.”

J.P. Morgan and Wells Fargo have been Co-Left Lead Arrangers on the structuring and syndication of the ability, 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 might differ from these expressed or implied within the firm’s forward-looking statements. Zebra might 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, common home and worldwide financial situations, and different elements. These elements embrace buyer acceptance of Zebra’s choices and rivals’ choices, and the potential results of rising applied sciences and modifications in buyer necessities. The impact of world market situations and the supply of credit score and capital markets volatility might have opposed 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 might have adverse results on our enterprise and outcomes of operations. Our capacity to buy adequate supplies, elements, and elements in addition to our capacity to supply providers and software program to satisfy buyer demand may negatively influence our outcomes of operations and buyer relationships. Earnings and profitability might be affected by Zebra’s capacity to regulate manufacturing and working prices. Due to its debt, rates of interest and monetary market situations can also have an effect on outcomes. Overseas trade charges, customs duties and commerce insurance policies might impact monetary outcomes due to the big share of our worldwide gross sales. The impacts of modifications in international and home governmental insurance policies, rules, or legal guidelines, in addition to the end result of litigation or tax issues wherein Zebra could also be concerned are different elements. 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 elements may have an opposed 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 elements that might have an effect on the corporate’s future operations and outcomes might be present in Zebra’s filings with the Securities and Change Fee. Particularly, please check with Zebra’s newest submitting of its Kind 10-Okay 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, related 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 once they make the most of Zebra improvements that assist them sense, analyze and act in actual time. Zebra lately 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. Be taught 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 house owners. ©2022 Zebra Applied sciences Company and/or its associates. All rights reserved.



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