Deluxe adds $130 million under term loan for First Manhattan purchase

By Wendy Van Sickle

Columbus, Ohio, Jan. 6 – Deluxe Corp. entered into an amendment on Dec. 30 to its credit agreement with JPMorgan Chase Bank, NA as administrative agent to increase its term loan by $130 million to $330 million, according to an 8-K filing with the Securities and Exchange Commission.

The additional term loan proceeds were drawn at closing and used to fund Deluxe’s acquisition of First Manhattan Consulting Group, LLC and some of its affiliates.

As of Thursday, the company had drawn under the credit agreement the full term loan amount and $431 million on the revolving credit facility for a total of $761 million. Deluxe had $84 million of remaining availability under the revolver.

Interest continues to accrue at an adjusted Libor plus 150 basis points to 212.5 bps, based on Deluxe’s leverage ratio.

The agreement matures on Feb. 21, 2019.

Fifth Third Bank is the syndication agent, and U.S. Bank NA, Union Bank, NA and PNC Bank, NA are co-documentation agents of the credit agreement.

Deluxe provides checks and business services for small businesses and financial institutions and is based in Shoreview, Minn. First Manhattan is a marketing services company based in New York City.

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