Zeta Announces Successful Completion of Debt Refinancing
Zeta Global (NYSE: ZETA) has successfully closed a $550 million loan facility to refinance its existing debt and lower credit spreads. The facility comprises a $200 million Term Loan A and a $350 million Revolving Credit Facility, which remains undrawn. This refinancing reduces Zeta's cost of capital and strengthens its liquidity, providing increased flexibility for potential tuck-in acquisitions. The company's leverage ratio is currently less than 0.5x.
CEO David A. Steinberg emphasized that Zeta's core value proposition of data and AI continues to drive strong organic growth. CFO Chris Greiner noted that the financing enhances Zeta's financial flexibility and improves free cash flow. BofA Securities, Inc. served as Lead Arranger and Bookrunner, with several other financial institutions participating in the facility.
Zeta Global (NYSE: ZETA) ha chiuso con successo un prestito di 550 milioni di dollari per rifinanziare il proprio debito esistente e ridurre gli spread creditizi. L'impianto comprende un prestito a termine A da 200 milioni di dollari e un credito revolving da 350 milioni di dollari, che rimane non utilizzato. Questo rifinanziamento riduce il costo del capitale di Zeta e ne rafforza la liquidità, fornendo maggiore flessibilità per potenziali acquisizioni a complemento. L’attuale rapporto di indebitamento dell’azienda è inferiore a 0,5x.
Il CEO David A. Steinberg ha sottolineato che il valore fondamentale di Zeta, basato su dati e intelligenza artificiale, continua a guidare una forte crescita organica. Il CFO Chris Greiner ha osservato che il finanziamento migliora la flessibilità finanziaria di Zeta e ottimizza il flusso di cassa libero. BofA Securities, Inc. ha svolto il ruolo di Lead Arranger e Bookrunner, con la partecipazione di diverse altre istituzioni finanziarie nell'impianto.
Zeta Global (NYSE: ZETA) ha cerrado con éxito un préstamo de 550 millones de dólares para refinanciar su deuda existente y reducir los márgenes de crédito. La instalación comprende un préstamo a plazo A de 200 millones de dólares y una línea de crédito revolvente de 350 millones de dólares, que permanece sin utilizar. Este refinanciamiento reduce el costo de capital de Zeta y fortalece su liquidez, proporcionando mayor flexibilidad para posibles adquisiciones complementarias. La relación de apalancamiento de la compañía es actualmente inferior a 0,5x.
El CEO David A. Steinberg enfatizó que la propuesta de valor fundamental de Zeta basada en datos e inteligencia artificial sigue impulsando un fuerte crecimiento orgánico. El CFO Chris Greiner destacó que el financiamiento mejora la flexibilidad financiera de Zeta y optimiza el flujo de caja libre. BofA Securities, Inc. actuó como el Arranjador Principal y Bookrunner, con la participación de varias otras instituciones financieras en la instalación.
Zeta Global (NYSE: ZETA)는 기존 부채를 재조정하고 신용 스프레드를 낮추기 위해 5억 5천만 달러 규모의 대출 시설을 성공적으로 마감했습니다. 이 시설은 2억 달러의 Term Loan A와 3억 5천만 달러의 회전 신용 시설으로 구성되며, 후자는 사용되지 않았습니다. 이 재융자는 Zeta의 자본 비용을 줄이고 유동성을 강화하여 잠재적인 추가 인수에 대한 유연성을 높입니다. 회사의 레버리지 비율은 현재 0.5x 미만입니다.
CEO David A. Steinberg는 데이터와 AI에 기반한 Zeta의 핵심 가치 제안이 여전히 강력한 유기적 성장을 이끌고 있다고 강조했습니다. CFO Chris Greiner는 이 자금 조달이 Zeta의 재정적 유연성을 향상시키고 자유 현금 흐름을 개선한다고 언급했습니다. BofA Securities, Inc.는 주요 주선자 및 북런너 역할을 하였으며, 여러 다른 금융 기관들이 이 시설에 참여했습니다.
Zeta Global (NYSE: ZETA) a conclu avec succès un prêt de 550 millions de dollars pour refinancer sa dette existante et réduire les spreads de crédit. L'installation comprend un prêt à terme A de 200 millions de dollars et une ligne de crédit renouvelable de 350 millions de dollars, qui reste non utilisée. Ce refinancement réduit le coût du capital de Zeta et renforce sa liquidité, offrant une flexibilité accrue pour d'éventuelles acquisitions complémentaires. Le ratio d'endettement de l'entreprise est actuellement inférieur à 0,5x.
Le PDG David A. Steinberg a souligné que la proposition de valeur clé de Zeta, fondée sur les données et l'intelligence artificielle, continue de favoriser une forte croissance organique. Le CFO Chris Greiner a noté que le financement améliore la flexibilité financière de Zeta et optimise le flux de trésorerie libre. BofA Securities, Inc. a été le Lead Arranger et Bookrunner, avec la participation de plusieurs autres institutions financières dans l'installation.
Zeta Global (NYSE: ZETA) hat erfolgreich eine Darlehensfazilität in Höhe von 550 Millionen Dollar abgeschlossen, um seine bestehende Verschuldung umzuschulden und die Kreditaufschläge zu senken. Die Fazilität besteht aus einem Darlehen A über 200 Millionen Dollar und einer revolvierenden Kreditfazilität über 350 Millionen Dollar, die ungenutzt bleibt. Diese Umschuldung senkt die Kapitalkosten von Zeta und stärkt die Liquidität, wodurch mehr Flexibilität für potenzielle Ergänzungsakquisitionen geschaffen wird. Das Verschuldungsverhältnis des Unternehmens liegt derzeit bei unter 0,5x.
CEO David A. Steinberg betonte, dass das zentrale Wertangebot von Zeta, das auf Daten und KI basiert, weiterhin ein starkes organisches Wachstum antreibt. CFO Chris Greiner stellte fest, dass die Finanzierung die finanzielle Flexibilität von Zeta erhöht und den freien Cashflow verbessert. BofA Securities, Inc. fungierte als Lead Arranger und Bookrunner, wobei mehrere andere Finanzinstitute an der Fazilität beteiligt waren.
- Successfully closed a $550 million loan facility at favorable terms
- Reduced cost of capital and strengthened liquidity
- Increased financial flexibility for potential tuck-in acquisitions
- Current leverage ratio of less than 0.5x
- Improved free cash flow due to lower credit spreads
- None.
Insights
Zeta's successful $550 million debt refinancing is a strategic move that strengthens its financial position. The new facility, comprising a
Zeta's refinancing aligns with market trends where companies are capitalizing on favorable lending conditions to optimize their capital structures. The involvement of major financial institutions as participants in the facility underscores Zeta's credibility in the market. The company's focus on AI-powered marketing solutions positions it well in a growing sector. Zeta's acquisition strategy, emphasizing rapid integration and synergistic growth, could potentially accelerate its market share expansion. The company's ability to secure better terms in this refinancing may indicate strong financial performance and positive market perception, which could translate to increased investor confidence.
Zeta's refinancing strategy reflects a mature approach to balancing growth and financial stability in the tech sector. The company's emphasis on data and AI driving organic growth aligns with current industry trends. Their acquisition criteria, particularly the focus on full platform integration within a year and faster growth rates, demonstrate a disciplined approach to technological expansion. This strategy could potentially accelerate Zeta's innovation cycle and enhance its competitive edge in the AI-Powered Marketing Cloud space. The improved financial flexibility could allow for increased R&D investments, further solidifying Zeta's position in the rapidly evolving MarTech landscape.
“We are pleased to announce this proactive refinancing agreement, which reduces our cost of capital and strengthens our liquidity,” said David A. Steinberg, Co-Founder, Chairman, and CEO of Zeta. “Our model remains the same with our core value proposition of data and AI driving strong organic growth. This increased flexibility allows us to remain opportunistic for tuck-in acquisitions that we expect to meet our criteria which includes:
- Fully integrate into our platform in less than a year,
- Be accretive from day 1,
- Possess clear synergies across combined customer bases, and
- Grow the acquired business at faster pace than our overall organic growth rate.”
"This financing is a key step in strengthening Zeta's balance sheet and ensuring that the company is well-positioned for future growth,” said Chris Greiner, Zeta’s CFO. “By securing this capital at favorable terms, we are enhancing our financial flexibility that is aligned with our long-term vision. Additionally, the lower credit spreads achieved through this deal will improve our free cash flow, further supporting our go forward business strategy while currently operating at a leverage ratio of less than 0.5x."
BofA Securities, Inc. served as Lead Arranger and Bookrunner. MUFG, Key Bank, RBC, Truist, Citi, and Morgan Stanley are also participants in the facility.
About Zeta
Zeta Global (NYSE: ZETA) is the AI-Powered Marketing Cloud that leverages advanced artificial intelligence (AI) and trillions of consumer signals to make it easier for marketers to acquire, grow, and retain customers more efficiently. Through the Zeta Marketing Platform (ZMP), our vision is to make sophisticated marketing simple by unifying identity, intelligence, and omnichannel activation into a single platform – powered by one of the industry’s largest proprietary databases and AI. Our enterprise customers across multiple verticals are empowered to personalize experiences with consumers at an individual level across every channel, delivering better results for marketing programs. Zeta was founded in 2007 by David A. Steinberg and John Sculley and is headquartered in
Forward-Looking Statements
This press release, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Any statements made in this press release that are not statements of historical fact are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning our anticipated future financial performance, our market opportunities and our expectations regarding our business plan and strategies. These statements often include words such as “anticipate,” “expect,” “suggests,” “plan,” “believe,” “intend,” “estimates,” “targets,” “projects,” “should,” “could,” “would,” “may,” “will,” “forecast,” “outlook,” “guidance” and other similar expressions. We base these forward-looking statements on our current expectations, plans and assumptions that we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances at such time. Although we believe that these forward-looking statements are based on reasonable assumptions at the time they are made, you should be aware that many factors could affect our business, results of operations and financial condition and could cause actual results to differ materially from those expressed in the forward-looking statements. These statements are not guarantees of future performance or results. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240903122256/en/
Investor Relations
Scott Schmitz
ir@zetaglobal.com
Press
James A. Pearson
press@zetaglobal.com
Source: Zeta Global
FAQ
What is the size of Zeta Global's new loan facility?
How is Zeta's new $550 million loan facility structured?
What is Zeta's current leverage ratio after the refinancing?
Who served as the Lead Arranger and Bookrunner for Zeta's loan facility?
