---
schema_version: "secwatch.filing_event.v1"
accession: "0001101680-23-000100"
form_type: "8-K"
ticker: null
cik: "0001101680"
company_name: "DZS INC."
filed_at: "2023-09-13T23:59:59+00:00"
generated_at: "2026-06-10T18:40:51.478753+00:00"
event_type: "debt"
sentiment: "neutral"
materiality_score: 0.75
calibrated_materiality_score: 0.75
confidence: "high"
source: SEC EDGAR
---

# DZS secures $29.7M in loans from major shareholder DNI; Chairman Min Woo Nam resigns from board

## Summary
- DNS Korea subsidiary received $24.5M three-year term loan from DASAN Networks at 8% interest; proceeds used to repay existing credit facility.
- Additional $5.2M in short-term loans from South Korean banks completed, totaling $29.7M in new financing.
- Min Woo Nam, Chairman of DZS Board and CEO of DNI, resigned effective Sept 15, 2023; not due to disagreement.
- After repayment, $9.4M in borrowings and $3.0M in letters of credit remain under existing credit agreement; company pursuing replacement facility.
- Company expects to lower quarterly operating spend by ~$10M by Q1 2024 vs Q1 2023 (from $34M to $24M).

## SEC filing metadata
- accession: 0001101680-23-000100
- form_type: 8-K
- cik: 0001101680
- company_name: DZS INC.
- filed_at: 2023-09-13T23:59:59+00:00
- event_type: debt
- sentiment: neutral
- materiality_score: 0.75
- calibrated_materiality_score: 0.75
- confidence: high
- sec_items: 1.01, 2.03, 5.02, 7.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1101680/000110168023000100/0001101680-23-000100-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1101680/000110168023000100/dzsi-20230912.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001101680-23-000100
- JSON: https://secwatch.observer/filing/0001101680-23-000100.json
- Plain text: https://secwatch.observer/filing/0001101680-23-000100.txt

## Key facts
- Debt Financings
  DZS INC. incurred term loan of 32,670,750,000 South Korean Won with Dasan Networks, Inc. at 8.0% per annum maturing September 12, 2026.
  - Instrument: term loan
  - Principal: 32,670,750,000 South Korean Won
  - Counterparty: Dasan Networks, Inc.
  - Rate: 8.0% per annum
  - Maturity: September 12, 2026
  - Event: incurrence
  source text: DNS Korea received a three-year term loan in an aggregate principal amount equal to 32,670,750,000 South Korean Won (“KRW”), the equivalent of $24,500,000 USD (the “DNI Loan”). The DNI Loan matures on September 12, 2026 and bears interest at a fixed rate of 8.0% per annum.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1101680/000110168023000100/0001101680-23-000100-index.htm
- Executive change
  Min Woo Nam resigned as Chairman of the Board of Directors at DZS INC..
  - Action: resigned
  - Role: Chairman of the Board of Directors
  source text: Mr. Min Woo Nam, the Chairman of the Board of Directors (the “Board”) of the Company and the Chief Executive Officer of DNI, resigned from the Board effective as of September 15, 2023.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1101680/000110168023000100/0001101680-23-000100-index.htm
- Material Agreements
  DZS INC. entered into Loan Agreement with Dasan Networks, Inc. valued at 32,670,750,000 South Korean Won (effective 2023-09-12).
  - Action: entry
  - Agreement: credit facility
  - Counterparty: Dasan Networks, Inc.
  - Value: 32,670,750,000 South Korean Won
  - Effective: 2023-09-12
  source text: On September 12, 2023, DASAN Network Solutions, Inc., a Korea corporation, as borrower (“DNS Korea”), entered into a Loan Agreement (the “Loan Agreement”) with Dasan Networks, Inc., a Korea corporation, as lender (“DNI”), DZS California, Inc., a California corporation, as collateral provider (“DZS California”), and DZS Inc., a Delaware corporation (the “Company”). DNS Korea is an indirect subsidiary of the Company. Pursuant to the Loan Agreement, DNS Korea received a three-year term loan in an aggregate principal amount equal to 32,670,750,000 South Korean Won (“KRW”), the equivalent of $24,500,000 USD (the “DNI Loan”).
  evidence_url: https://www.sec.gov/Archives/edgar/data/1101680/000110168023000100/0001101680-23-000100-index.htm
- Material Agreements
  DZS INC. amended Limited Consent with the lenders under the Credit Agreement (effective 2023-09-12).
  - Action: amendment
  - Agreement: credit facility
  - Counterparty: the lenders under the Credit Agreement
  - Effective: 2023-09-12
  source text: Also on September 12, 2023, the Company entered into a letter agreement (the “Limited Consent”) with the lenders under the Credit Agreement, which, among other things, permits the incurrence of the DNI Loan and certain other indebtedness of DNS Korea
  evidence_url: https://www.sec.gov/Archives/edgar/data/1101680/000110168023000100/0001101680-23-000100-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.