Cimpress Announces Offering of $525 Million of Senior Notes Due 2032
Cimpress plc (Nasdaq: CMPR) has announced a private offering of $525 million in senior notes due 2032. The company plans to use the net proceeds, along with cash on hand, to redeem all existing 7.0% Senior Notes due 2026 and cover related fees and expenses. Concurrently, Cimpress intends to amend its existing credit agreement to extend the maturity of its revolving credit facility and adjust the applicable interest rate.
The transaction is expected to be leverage neutral, aside from covering transaction fees. The notes will only be offered to qualified institutional buyers in the U.S. and non-U.S. persons in offshore transactions. The offering and credit agreement amendment are not contingent upon each other's completion.
Cimpress plc (Nasdaq: CMPR) ha annunciato un'offerta privata di 525 milioni di dollari in note senior con scadenza nel 2032. La società prevede di utilizzare il ricavato netto, insieme alla liquidità disponibile, per rimborsare tutte le attuali Senior Notes al 7,0% in scadenza nel 2026 e coprire le spese e le commissioni correlate. Contemporaneamente, Cimpress intende modificare il proprio accordo di credito esistente per estendere la scadenza della propria linea di credito rotativa e adeguare il tasso di interesse applicabile.
Si prevede che la transazione sia neutra in termini di leva, a parte la copertura delle spese di transazione. Le note saranno offerte solo a compratori istituzionali qualificati negli Stati Uniti e a persone non statunitensi in transazioni offshore. L'offerta e la modifica dell'accordo di credito non sono contingentate rispetto al completamento reciproco.
Cimpress plc (Nasdaq: CMPR) ha anunciado una oferta privada de 525 millones de dólares en notas senior con vencimiento en 2032. La compañía planea usar los ingresos netos, junto con el efectivo disponible, para redimir todas las notas senior existentes al 7,0% que vencen en 2026 y cubrir los gastos y comisiones relacionados. Al mismo tiempo, Cimpress tiene la intención de enmendar su acuerdo de crédito existente para extender el vencimiento de su línea de crédito rotatorio y ajustar la tasa de interés aplicable.
Se espera que la transacción sea neutral en términos de apalancamiento, aparte de cubrir los gastos de transacción. Las notas solo se ofrecerán a compradores institucionales calificados en los EE. UU. y a personas no estadounidenses en transacciones en el extranjero. La oferta y la enmienda del acuerdo de crédito no dependen del cumplimiento mutuo.
Cimpress plc (Nasdaq: CMPR)은 2032년 만기인 5억 2500만 달러 규모의 선순위 채권 사모 발행을 발표했습니다. 이 회사는 순자산과 함께 보유 현금을 사용하여 2026년 만기인 기존 7.0% 선순위 채권을 모두 상환하고 관련 비용과 수수료를 충당할 계획입니다. 동시에 Cimpress는 기존 신용 계약을 수정하여 회전 신용 한도의 만기를 연장하고 적용되는 이자율을 조정할 예정입니다.
이 거래는 레버리지 중립인 것으로 예상되며, 거래 비용을 커버하는 것 외에는 추가적인 비용이 없습니다. 이 노트는 미국 내 자격을 갖춘 기관 투자자 및 해외 거래의 비 미국인에게만 제공됩니다. 제안 및 신용 계약 수정은 서로 완전히 독립적입니다.
Cimpress plc (Nasdaq : CMPR) a annoncé une offre privée de 525 millions de dollars en obligations senior échéant en 2032. L'entreprise prévoit d'utiliser le produit net, ainsi que la liquidité disponible, pour rembourser toutes les Obligations Senior existantes à 7,0 % arrivant à échéance en 2026 et couvrir les frais et dépenses connexes. Parallèlement, Cimpress envisage de modifier son accord de crédit existant pour prolonger l'échéance de sa ligne de crédit renouvelable et ajuster le taux d'intérêt applicable.
La transaction devrait être neutre en matière d'endettement, à part le coût des transactions. Les obligations ne seront offertes qu'à des acheteurs institutionnels qualifiés aux États-Unis et à des personnes non américaines lors de transactions offshore. L'offre et la modification de l'accord de crédit ne dépendent pas de l'exécution mutuelle.
Cimpress plc (Nasdaq: CMPR) hat eine private Platzierung von 525 Millionen Dollar in nachrangigen Anleihen mit Fälligkeit 2032 angekündigt. Das Unternehmen plant, die Nettoerlöse zusammen mit liquiden Mitteln zu verwenden, um alle bestehenden 7,0% Senior Notes mit Fälligkeit 2026 einzulösen und damit verbundene Gebühren und Kosten zu decken. Gleichzeitig beabsichtigt Cimpress, seinen bestehenden Kreditvertrag zu ändern, um die Laufzeit seiner revolvierenden Kreditfazilität zu verlängern und den anzuwendenden Zinssatz anzupassen.
Die Transaktion wird voraussichtlich leverage-neutral sein, abgesehen von den zu deckenden Transaktionsgebühren. Die Anleihen werden nur qualifizierten institutionellen Käufern in den USA und nicht in den USA ansässigen Personen in Offshore-Transaktionen angeboten. Das Angebot und die Änderung des Kreditvertrags hängen nicht von der gegenseitigen Vollziehung ab.
- Refinancing existing debt with new senior notes due 2032
- Extending maturity of revolving credit facility
- Transaction expected to be leverage neutral
- Increasing total debt by $525 million
- Potential impact on interest expenses depending on new interest rates
Cimpress's $525 million senior notes offering and credit agreement amendment represent a strategic refinancing move. By replacing the existing 7.0% notes due 2026 with new 2032 notes, the company is likely aiming to extend its debt maturity profile and potentially secure more favorable interest rates in the current market environment.
The transaction's leverage-neutral nature, barring transaction fees, suggests prudent financial management. However, investors should note that while this refinancing may improve Cimpress's debt structure, it doesn't fundamentally alter the company's overall leverage position. The extension of the revolving credit facility provides additional financial flexibility, which could be valuable in navigating future market uncertainties or funding growth initiatives.
Importantly, this private placement to qualified institutional buyers indicates strong institutional interest in Cimpress's debt, reflecting positively on the company's creditworthiness. Overall, this refinancing appears to be a proactive measure to optimize Cimpress's capital structure, potentially resulting in lower interest expenses and improved financial stability in the long term.
The structure of Cimpress's note offering raises several legal considerations. Firstly, the private placement under Rule 144A and Regulation S exemptions allows the company to bypass the more stringent registration requirements of public offerings. This approach offers greater flexibility and reduced regulatory burden but limits the potential investor base.
The non-contingent nature of the offering and credit agreement amendment is noteworthy from a legal perspective. This structure provides Cimpress with the flexibility to proceed with either transaction independently, potentially mitigating execution risk. However, it also introduces complexity in terms of disclosure obligations and potential market reactions.
Investors should be aware that these unregistered securities come with resale restrictions, which could impact liquidity. The company's careful wording around the offering being subject to market conditions also provides legal protection against potential claims if the offering doesn't proceed as planned. Overall, this transaction structure appears designed to balance regulatory compliance with financial flexibility.
DUNDALK,
Concurrently with the consummation of the Offering, we intend to amend our existing credit agreement to, among other things, extend the maturity of our revolving credit facility and amend the interest rate applicable to any loans under our revolving credit facility (the “Credit Agreement Amendment”).
We intend to use the net proceeds of this offering, together with cash on hand, to fund the redemption of all of our existing
The notes have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in
This press release is neither an offer to sell nor the solicitation of an offer to buy the notes or any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
Some of the statements in this press release are “forward-looking” and are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These “forward-looking” statements include statements relating to, among other things, the Offering, the Credit Agreement Amendment and the intended use of proceeds of the Offering. These statements involve risks and uncertainties that may cause results to differ materially from the statements set forth in this press release, including market conditions and the risks and uncertainties referenced from time to time in the Company’s filings with the Securities and Exchange Commission. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to such statements to reflect any change in its expectations with regard thereto or any changes in the events, conditions or circumstances on which any such statement is based.
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, Packstyle, Pixartprinting, Printi, VistaPrint, and WIRmachenDRUCK.
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.
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Investor Relations:
Meredith Burns
ir@cimpress.com
+1.781.652.6480
Media Relations:
Sara Litwiller
mediarelations@cimpress.com
Source: Cimpress plc
FAQ
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