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CPI Card Group Inc. Announces Pricing of Private Offering of $310 Million of Senior Secured Notes
LITTLETON, Colo.--(BUSINESS WIRE)-- CPI Card Group Inc. (OTCQX: PMTS; TSX: PMTS) (“CPI” or the “Company”) today announced the pricing of the previously
About this update from Cpi Card Group Inc.
[{"type":"text","content":" LITTLETON, Colo.--(BUSINESS WIRE)--\nCPI Card Group Inc. (OTCQX: PMTS; TSX: PMTS) (“CPI” or the “Company”) today announced the pricing of the previously announced private offering by its wholly-owned subsidiary, CPI CG Inc. (the “issuer”), of $310 million aggregate principal amount of its 8.625% senior secured notes due 2026 (the “notes”) and related guarantees. The offering is expected to close on March 15, 2021, subject to customary closing conditions.\n\nThe issuer intends to use the net proceeds from the offering, together with cash on hand and initial borrowings under a $50 million secured asset based revolving credit facility that it expects to enter into concurrently with the issuance of the notes (the “ABL revolver”), to repay in full and terminate its existing credit facilities and to pay related fees and expenses. There is no assurance that the issuer will be able to enter into the ABL revolver simultaneously with the issuance of the notes or at all.\n\nThe notes are expected to be general senior secured obligations of the issuer and guaranteed by the Company and certain of its current and future wholly-owned domestic subsidiaries (other than the issuer) that will guarantee the ABL revolver, and will be secured by substantially all of the assets of the issuer and the guarantors, subject to customary exceptions.\n\nThe notes and related guarantees were offered only to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), or outside the United States to certain non-U.S. persons in compliance with Regulation S under the Securities Act. The issuance and sale of the notes and related guarantees have not been, and will not be, registered under the Securities Act or the securities laws of any state or other jurisdiction, and the notes and related guarantees may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and other applicable securities laws.\n\nThis press release shall not constitute an offer to sell or the solicitation of an offer to buy the notes and related guarantees. Offers of the notes and related guarantees were made only by means of a private offering memorandum, and are not being made to any person in any j...