Business News
Cenveo Completes Refinancing of Credit Facilities
Wednesday 17. April 2013 - Cenveo, Inc. (NYSE:CVO) today announced that its subsidiary, Cenveo Corporation ("Cenveo"), has completed the refinancing of its existing senior secured Term B Loan and Revolving Credit Facility with an amended and restated $360 million Term B Loan facility, through Bank of America, N.A. as administrative agent, and joint lead arrangers Bank of America, N.A., Macquarie Capital (USA) Inc. and Barclays Bank PLC, along with a new $200 million asset based loan ("ABL") Credit Agreement with Bank of America, N.A., as administrative agent, and Bank of America, N.A., Wells Fargo Bank, National Association, Barclays Bank PLC and General Electric Capital Corporation as joint lead arrangers.
The new credit facilities will provide significant benefits for the company including:
— Reducing the Term B Loan all-in interest rate from 7.00% to 6.25%;
— Lowering the cost of borrowing on our revolver from 7.00% to
approximately 2.20% based on current one month LIBOR rates and the
initial interest rate spread;
— Providing increased financial flexibility with updated covenants;
— Subject to the satisfaction of certain requirements relating to the
refinancing of Cenveo’s existing senior unsecured notes and senior
second lien notes, extending the Term B Loan maturity from December 21,
2016 to April 16, 2020 and extending Cenveo’s revolving credit facility
maturity from December 21, 2014 to April 16, 2018.
Robert G. Burton, Sr., Chairman and Chief Executive Officer stated:
“We were pleased to be able to take advantage of the strong credit markets to refinance our next two maturities. This refinancing lowers cash interest expense on our indebtedness by over $8 million on an annual basis. The favorable terms are a reflection of improved markets and Cenveo’s recent performance. We want to thank our lenders for their continued support and we can now devote our efforts to executing on our strategy, including evaluating our strategic alternatives as our next maturity is four years away.”