Cimpress firms pricing on $795 million, €300 million term loans

By Sara Rosenberg

New York, April 30 – Cimpress plc set pricing on its $795 million seven-year covenant-lite term loan B at Libor plus 350 basis points, the low end of the Libor plus 350 bps to 375 bps talk, and firmed the original issue discount at 99, the wide end of the 99 to 99.5 talk, according to a market source.

Additionally, pricing on the company’s €300 million seven-year covenant-lite term loan B finalized at Euribor plus 350 bps, the low end of the Euribor plus 350 bps to 375 bps talk, the source said.

The U.S. term loan still has a 0.5% Libor floor, the euro term loan still has a 0% floor and a discount of 99.5, and both term loans still have 101 soft call protection for six months.

Along with the term loans, the company plans on getting a $250 million five-year revolving credit facility.

JPMorgan Chase Bank is the left lead bookrunner and the administrative agent on the senior secured deal (Ba3/BB).

Proceeds will be used to redeem all of the company’s 12% second-lien notes due 2025, repay amounts drawn under its revolver, repay a term loan A and add cash to the balance sheet.

Closing and funding is expected on May 17.

The transaction will be net leverage neutral on a pro-forma basis, with net secured leverage and net total leverage of 2.3x and 4.1x, respectively, as of March 31.

Dundalk, Ireland-based Cimpress invests in and builds customer-focused, entrepreneurial, mass-customization businesses.

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