Cimpress Successfully Completes Repricing of Term Loan B and Lowers its Cost of Capital
May 15 2024 - 4:30PM
Business Wire
Cimpress plc (Nasdaq: CMPR), the parent company of VistaPrint
and other leading print mass customization businesses, today
announced the successful repricing of its $773 million USD tranche
of its senior secured Term Loan B (“TLB”). In addition, Cimpress
upsized the USD TLB tranche by $264 million and used the proceeds
to prepay the majority of its Euro TLB tranche. Cimpress’ USD TLB
tranche is now $1,037 million, and the Euro tranche is €46 million.
Cimpress executed a cross-currency swap concurrent with the
upsizing and repricing of the USD TLB tranche in order to maintain
the lower base rate and currency mix previously in place with the
Euro TLB tranche.
Cimpress estimates these actions will reduce annualized cash
interest expense by approximately $6 million compared to prior
pricing.
These actions are net leverage neutral, reduce the interest rate
margin applicable to the USD TLB tranche by 50 basis points to SOFR
plus 3.00% from SOFR plus 3.50%, and remove the credit spread
adjustment on the USD TLB tranche, which was previously 11 basis
points for one-month interest periods. The reduced Euro TLB tranche
has an unchanged interest rate of EURIBOR plus 3.50%.
No other material changes were made to the terms and conditions
of the TLB. The maturity date for both tranches of the TLB remains
May 17, 2028.
About Cimpress
Cimpress plc (Nasdaq: CMPR) invests in and builds
customer-focused, entrepreneurial, print mass-customization
businesses for the long term. Mass customization is a competitive
strategy which seeks to produce goods and services to meet
individual customer needs with near mass production efficiency.
Cimpress businesses include BuildASign, Drukwerkdeal, Exaprint,
National Pen, Pixartprinting, Printi, VistaPrint, and
WIRmachenDRUCK. To learn more, visit cimpress.com.
Cimpress and the Cimpress logo are trademarks of Cimpress plc or
its subsidiaries. All other brand and product names appearing on
this announcement may be trademarks or registered trademarks of
their respective holders.
SAFE HARBOR STATEMENT:
This press release contains statements about our future
expectations, plans, and prospects of our business that constitute
forward-looking statements for purposes of the safe harbor
provisions under the Private Securities Litigation Reform Act of
1995, including the cash interest expense savings we expect from
the repricing.
Forward-looking projections and expectations are inherently
uncertain, are based on assumptions and judgments by management,
and may turn out to be wrong. Our actual results may differ
materially from those indicated by the forward-looking statements
in this document as a result of various important factors,
including but not limited to flaws in the assumptions and judgments
upon which our forecasts and estimates are based; our ability to
maintain compliance with our debt covenants and pay our debts when
due; general economic conditions and changes in interest rates; and
other factors described in our Form 10-K for the fiscal year ended
June 30, 2023 and the other documents we periodically file with the
U.S. SEC.
In addition, the statements and projections in this press
release represent our expectations and beliefs as of the date of
this document and should not be relied upon as representing our
expectations or beliefs as of any date subsequent to the date of
this document. Subsequent events and developments may cause these
expectations, beliefs, and projections to change, and we
specifically disclaim any obligation to update any forward-looking
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20240515066210/en/
Investor Relations: Meredith Burns ir@cimpress.com
+1.781.652.6480
Media Relations: Sara Litwiller
mediarelations@cimpress.com
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