DZSI - DZS Secures $29.7 Million in Financing | Benzinga
DALLAS, Sept. 13, 2023 (GLOBE NEWSWIRE) -- DZS (NASDAQ:DZSI), a global leader of access, optical and AI-driven cloud software solutions, today announced it has secured $29.7 million in loans, including a $24.5 million 3-year term loan with 29% shareholder DASAN Networks, Inc. (DNI). The 3-year $24.5 million term loan with an annual interest rate of 8% complements approximately $5.2 million of short-term loans with South Korean bank financial partners. The cash will be used to pay off DZS' existing term debt facility and line of credit.
"As a major shareholder of DZS since 2016, we are inspired by the progress the company has made since the Board of Directors appointed Charlie Vogt as President and CEO of DZS in August 2020," said Mr. Min Woo Nam, CEO of DNI. "The company's committment to innovation spanning fixed and mobile networks has generated exciting interest around the world. DNI is encouraged with the company's future prospects and remains committed to support DZS. DNI expects DZS to convert many of the active trials across North America and EMEA to new customer logo wins in 2023 and 2024 as well as implementing a disciplined focus on net operating income and free cashflow."
"The new financing from DNI will ease our financial covenants, lower our interest cost basis and, together with the additional short-term loans secured or in final process, will fully pay off our existing loans," said Charlie Vogt, President and CEO. "Additionally, we plan to put a new ABL debt facility in place to fuel our growth as we enter 2024. The past three years have been transformational as we continue to execute a bold vision and strategy designed to disrupt the status quo within the broadband access and AI-driven cloud software market. Our mission has ...