Dundalk, Ireland – Cimpress plc announced the pricing and allocation of a 7-year approximately $1.16 billion senior secured Term Loan B (the “Term Loan B”), consisting of a $795 million USD tranche and a €300 million EUR tranche, both of which will mature in 2028. The USD tranche will bear interest at LIBOR (with a LIBOR floor of 0.50%) plus 3.50%, and be offered at 99.0% of par (or with an original issue discount of 1.0%). The EUR tranche will bear interest at EURIBOR (with a EURIBOR floor of 0%) plus 3.50% and be offered at 99.5% of par (or with an original issue discount of 0.5%).

As previously disclosed, Cimpress plans to use funds borrowed under the Term Loan B to redeem the entire $300 million aggregate principal amount of its 12% 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 in mid-May 2021, 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 $250 million secured revolving credit facility maturing in 2026. This transaction leaves Cimpress 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.