DZS secures replacement $29.7 million three-year term loan via Dasan

By Marisa Wong

Los Angeles, Sept. 13 – DZS Inc. announced it has secured $29.7 million of loans, including a $24.5 million three-year term loan with 29% shareholder Dasan Networks, Inc.

The three-year $24.5 million term loan with an annual interest rate of 8% complements about $5.2 million of short-term loans with South Korean bank financial partners, according to a press release.

The cash will be used to pay off the company’s existing term debt facility and line of credit.

“The new financing from [Dasan Networks] 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,” president and chief executive officer Charlie Vogt said in the press release.

“Additionally, we plan to put a new ABL debt facility in place to fuel our growth as we enter 2024.”

DZS is a Plano, Tex.-based provider of fiber access and optical telecommunications networking and cloud software technology.

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