DZS borrows $15 million three-year term loan from EdgeCo

Chicago, Jan. 5 – DZS Inc. borrowed $15 million from EdgeCo, LLC in the form of a three-year term loan on Dec. 29, according to an 8-K filing with the Securities and Exchange Commission.

The 13% interest rate is payable monthly, and the loan matures on Dec. 29, 2026.

If the company prepays the loan before the 18-month anniversary, the loan prepayment will be par plus the interest due through the 18-month anniversary.

The loan is secured by assets of the company.

EdgeCo will have a right of first refusal for any additional debt financing up to $15 million or any equity offering of common stock before Dec. 31, 2026.

EdgeCo was also given the right to designate a member of the company’s board of directors.

EdgeCo received warrants for 6.1 million shares of common stock at an exercise price of $1.84 per share.

DZS is a Plano, Tex.-based provider of fiber access and optical telecommunications networking and cloud software technology.

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