CPI Card Group Inc. Announces Closing of Private Offering of $310 Million of Senior Secured Notes & Entry into $50 Million AB...
March 15 2021 - 4:15PM
Business Wire
CPI Card Group Inc. (OTCQX: PMTS; TSX: PMTS) (“CPI” or the
“Company”) today announced the closing of the previously announced
private offering by its wholly-owned subsidiary, CPI CG Inc. (the
“issuer”), of $310 million aggregate principal amount of its 8.625%
senior secured notes due 2026 (the “notes”) and related
guarantees.
The issuer used the net proceeds from the offering, together
with $22.8 million cash on hand and $15 million of initial
borrowings under a $50 million secured asset based revolving credit
facility that it entered into concurrently with the issuance of the
notes (the “ABL revolver”), to repay in full and terminate its
existing credit facilities and to pay related fees and
expenses.
The notes are general senior secured obligations of the issuer
and guaranteed by the Company and certain of its current and future
wholly-owned domestic subsidiaries (other than the issuer) that
guarantee the ABL revolver, and are secured by substantially all of
the assets of the issuer and the guarantors, subject to customary
exceptions.
The notes and related guarantees were offered only to persons
reasonably believed to be qualified institutional buyers in
accordance with Rule 144A under the Securities Act of 1933, as
amended (the “Securities Act”), or outside the United States to
certain non-U.S. persons in compliance with Regulation S under the
Securities Act. The issuance and sale of the notes and related
guarantees have not been, and will not be, registered under the
Securities Act or the securities laws of any state or other
jurisdiction, and the notes and related guarantees may not be
offered or sold in the United States absent registration or an
applicable exemption from the registration requirements of the
Securities Act and other applicable securities laws.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the notes and related guarantees.
Offers of the notes and related guarantees were made only by means
of a private offering memorandum, and are not being made to any
person in any jurisdiction in which such offer, sale or
solicitation is unlawful.
About CPI Card Group Inc.
CPI Card Group® is a payment technology company and leading
provider of credit, debit and prepaid solutions delivered
physically, digitally and on-demand. CPI helps our customers foster
connections and build their brands through innovative and reliable
solutions, including financial payment cards, personalization, and
Software-as-a-Service (SaaS) instant issuance. CPI has more than 20
years of experience in the payments market and is a trusted partner
to financial institutions and payments services providers. Serving
customers from locations throughout the United States, CPI has a
large network of high security facilities, each of which is
registered as PCI compliant by one or more of the payment brands:
Visa, Mastercard®, American Express® and Discover®.
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CPI Card Group Inc. Investor
Relations: (877) 369-9016
InvestorRelations@cpicardgroup.com CPI
Card Group Inc. Media Relations:
Media@cpicardgroup.com
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