Zebra Technologies repriced its $1.96 billion term loan. JPMorgan Chase Bank served as revolving facility administrative agent, and Morgan Stanley Senior Funding served as term loan administrative agent and collateral agent.

Under the amended term loan, the interest rate was reduced by 75 basis points to LIBOR+3.25% (LIBOR floor of 0.75% is unchanged), from LIBOR+4.00%, which is expected to generate annualized interest expense net savings of approximately $14 million based on the current principal balance outstanding. The company expects to continue to reduce the principal balance prior to the October 27, 2021 maturity date. The company will incur approximately $6 million of debt issuance and discount costs related to the repricing.

“In-line with our commitment to further improving the financial strength of Zebra, we’re announcing the successful repricing of our term loan, which provides meaningful interest expense savings. We continually explore opportunities to lower borrowing costs as we reduce the financial leverage within our capital structure. We appreciate our lenders’ continued support of Zebra,” said Michael Smiley, CFO of Zebra Technologies.