Zebra reprices revolver, term loan A; revolver upsized to $800 million

By Wendy Van Sickle

Columbus, Ohio, May 31 – Zebra Technologies Corp. amended its upsized $800 million revolving credit facility and its $670 million term loan A as well as its downsized $825 million term loan B, according to a press release.

The revolver was increased from $500 million prior to the amendment.

The amended revolver and the term loan A mature in July 2021 and are priced at Libor plus 175 basis points. The spread over Libor will be reduced by an additional 12.5 bps upon certification that Zebra has attained a certain debt leverage threshold, which is expected to occur before the end of 2018.

Zebra currently has $537 million drawn on the revolver.

As previously reported, the company downsized its term loan B from $1,125,000,000 and reduced pricing by 25 bps to Libor plus 175 bps with a 0.75% Libor floor and a par issue price.

The secured covenant-light term loan B is due Oct. 27, 2021.

The term loan B has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Morgan Stanley Senior Funding Inc. and J.P. Morgan Securities LLC are the lead banks on the term loan B.

The restructuring transactions are expected to result in annualized interest expense savings of about $4 million to 5 million.

Zebra is a Lincolnshire, Ill.-based provider of marking and printing technologies.

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