Zeta Global (NYSE: ZETA) has recently announced the successful completion of a debt refinancing initiative, securing a $550 million loan facility. The new debt consists of a $200 million term loan A and a $350 million revolving credit facility, which was undrawn at the time of closing. Zeta's CEO, David A. Steinberg, highlighted that this proactive refinancing agreement is aimed at reducing the company's cost of capital and strengthening its liquidity. One of the key objectives behind this move is to enhance the company's financial flexibility in line with its long-term vision.
The lower credit spreads achieved through this refinancing are expected to improve Zeta's free cash flow, further supporting its business strategy. The company is currently operating at a leverage ratio of less than 0.5x. Chris Greiner, Zeta's CFO, emphasized that this financing is a significant step in strengthening Zeta's balance sheet and positioning the company for future growth.
The financing arrangement was facilitated by BofA Securities, Inc., which served as the lead arranger and bookrunner. Other participants in the facility include MUFG, Key Bank, RBC, Truist, Citi, and Morgan Stanley.
Zeta Global, founded in 2007 by David A. Steinberg and John Sculley and headquartered in New York City, is an AI-powered marketing cloud that leverages advanced artificial intelligence and trillions of consumer signals to help marketers acquire, grow, and retain customers more efficiently. The company's vision is to simplify sophisticated marketing by unifying identity, intelligence, and omnichannel activation into a single platform.
The successful debt refinancing not only demonstrates Zeta's ability to secure favorable terms but also aligns with its strategic goals, providing the company with the financial flexibility needed for potential future endeavors. Following these announcements, the company's shares moved 1.8%, and are now trading at a price of $26.41. Check out the company's full 8-K submission here.
