RFID component and printer provider Zebra Technologies has entered into a new five-year, $100 million credit facility, giving the company a new source of funding for working capital and general corporate purposes, including stock buybacks and acquisitions.
“We put the credit facility in place to provide financing flexibility,” says Michael Smiley, Zebra’s chief financial officer. “Zebra’s ability to secure credit on favorable terms in this uncertain financial market environment is a testament to the strength of the company’s balance sheet, cash flows and growth prospects.”
The group of financial institutions involved in the credit facility includes Northern Trust Co., Bank of America, JPMorgan Chase Bank, Wells Fargo Bank and RBS Citizens, with J. P. Morgan Securities Inc. as the lead arranger.
The revolving credit facility also has a $100 million accordion feature that allows the company to increase the facility up to a total of $200 million, if Zebra is able to obtain commitments for the increased funding from existing or new lenders.