Zebra Technologies Plans $500M Notes Offering

Zebra Technologies Corporation (NASDAQ: ZBRA) has announced its intention to offer up to $500 million in aggregate principal amount of new senior unsecured notes due 2032 in a private offering. The company plans to use the net proceeds from the notes offering to repay all outstanding debt under its revolving credit facility, which amounted to $172 million as of March 30, 2024. Additionally, Zebra intends to utilize the remaining net proceeds for general corporate purposes, including replenishing cash on hand following the repayment of its receivables financing facility that matured on May 13, 2024.

It is important to note that the notes and related guarantees will not be registered under the Securities Act of 1933, as amended, or the securities laws of any other jurisdiction, and will not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. The offering is being made exclusively to qualified institutional buyers in accordance with Rule 144A under the Securities Act and to non-U.S. persons in accordance with Regulation S under the Securities Act.

This announcement marks a significant move by Zebra Technologies Corporation, as it looks to raise funds and manage its outstanding debt obligations. The company's decision to tap into the senior unsecured notes market reflects its strategic approach to strengthening its financial position and addressing its capital structure. The market has reacted to these announcements by moving the company's shares 0.8% to a price of $320.5. For more information, read the company's full 8-K submission here.

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