Cimpress Announces Pricing and Allocation of $1.16 Billion Term Loan B
April 30, 2021 at 03:00 pm EDT
Share
Cimpress plc announced the pricing and allocation of a 7-year approximately $1.16 billion senior secured Term Loan B (the “Term Loan B”), consisting of a $795 million USD tranche and a €300 million EUR tranche, both of which will mature in 2028. The USD tranche will bear interest at LIBOR (with a LIBOR floor of 0.50%) plus 3.50%, and be offered at 99.0% of par (or with an original issue discount of 1.0%). The EUR tranche will bear interest at EURIBOR (with a EURIBOR floor of 0%) plus 3.50% and be offered at 99.5% of par (or with an original issue discount of 0.5%). As previously disclosed, Cimpress plans to use funds borrowed under the Term Loan B to redeem the entire $300 million aggregate principal amount of its 12% second lien notes due 2025, repay all amounts drawn under its revolving credit facility and repay all borrowings in respect of the Term Loan A under its secured credit facility due 2024. The transaction will be approximately net leverage neutral on a pro-forma basis. Cimpress expects to close the Term Loan B transaction in mid-May 2021, in conjunction with the first call date for the second lien notes. At that time, Cimpress’ existing Term Loan A will terminate and Cimpress will have a $250 million secured revolving credit facility maturing in 2026. This transaction leaves Cimpress with ample liquidity and, at closing, Cimpress will not be subject to quarterly leverage-based financial maintenance covenants unless it has a drawn balance on its credit facility at the end of any quarter.
Cimpress plc is focused on mass customization of printing and related products, via which it delivers volumes of individually small-sized customized orders. Its segments include Vista, PrintBrothers, The Print Group, National Pen and All Other Businesses. The Vista segment includes Vista, the parent brand of multiple offerings, including VistaPrint, VistaCreate, 99designs by Vista, Vista Corporate Solutions, and Depositphotos. The PrintBrothers segment includes its druck.at, Printdeal, and WIRmachenDRUCK businesses. The Print Group segment includes its Easyflyer, Exaprint, Pixartprinting, and Tradeprint businesses. The National Pen segment includes the global operations of its National Pen business, which manufactures and markets custom writing instruments and promotional products, apparel and gifts. The All Other Businesses segment includes two businesses grouped together based on materiality. Its products are marketing materials, business cards, signage, packaging and others.