Zeta Global has closed a new $1 billion credit facility to refinance existing debt, reduce its borrowing spreads and increase its financial flexibility. The facility consists of a $250 million term loan and a $750 million revolving credit line.
The revolving facility was undrawn when the financing closed, giving Zeta access to additional capital without requiring the company to immediately borrow the full amount.
The new financing replaces Zeta’s previous $550 million credit facility.
Zeta plans to use the expanded capacity for acquisitions, share repurchases and other general corporate purposes.
The company described the refinancing as a way to reduce its cost of capital while creating additional flexibility to act on strategic opportunities.
BofA Securities served as lead arranger and bookrunner.
Citi, JPMorgan, RBC Capital Markets and Truist Securities acted as joint lead arrangers and bookrunners. Flagstar and Morgan Stanley served as co-documentation agents, while MUFG participated in the facility.
Zeta develops AI infrastructure that helps companies use proprietary customer and business data for decision-making and marketing.
Its products include the Zeta Data Cloud and Athena by Zeta, which connect enterprise data with AI systems to support customer engagement and other business processes.
The company was founded in 2007 by David Steinberg and John Sculley.
KEY QUOTES:
“This proactive refinancing reduces our cost of capital and strengthens our liquidity.”
“This increased flexibility provides incredible optionality to pursue accretive M&A, support general corporate purposes and execute opportunistically on share buybacks.”
David A. Steinberg, Co-Founder, Chairman and CEO of Zeta Global
“By securing this capital at favorable terms, we are enhancing our financial flexibility that is aligned with our long-term vision.”
Chris Greiner, CFO of Zeta Global
