Cimpress consolidates loans into US$1.16bn facility

B2C print operation Vistaprint parent Cimpress is rolling all its financing into a seven-year US$1.16bn facility, split between US$795m and €300m.

Cimpress plans to use funds borrowed to redeem its entire Term Loan B US$300m aggregate principal amount of its 12 per cent second lien notes due 2025, repay all amounts drawn under its revolving credit facility, and repay all borrowings in respect of the Term Loan A under its secured credit facility due 2024.

The transaction will be approximately net leverage neutral on a pro-forma basis.

Cimpress expects to close the Term Loan B transaction next week, in conjunction with the first call date for the second lien notes. At that time, Cimpress’ existing Term Loan A will terminate and Cimpress will have a $250m secured revolving credit facility maturing in 2026.

The company says this transaction leaves it with ample liquidity and, at closing, Cimpress will not be subject to quarterly leverage-based financial maintenance covenants, unless it has a drawn balance on its credit facility at the end of any quarter.

Cimpress was established as a college project by founder Robert Keane and has since developed into the world’s biggest online print business. Its Vistaprint Deer Park plant in Melbourne services Australia, New Zealand and South East Asia.

The company was battered by Covid, its Q4 figures last year down by 36 per cent, dragging 2020/21 sales down by 10 per cent - the first time in its history sales went backwards. Vistaprint is the biggest division at Cimpress, its sales fell from US$1.5bn to US$1.34bn last year, although its EBITDA improved by three per cent to US$366m.