S&P applies BB+ to Cimpress facilities

S&P said it assigned a BB+ issue-level rating and 1 recovery rating to Cimpress NV's $1.045 billion senior secured credit facilities due 2022, which consist of a $745 million revolver and a $300 million term loan A.

The 1 recovery rating indicates an expectation for very high (70%-90%; rounded estimate: 95%) of principal in the event of a payment default.

The new credit facilities replace the company's senior secured credit facilities due 2019, which consisted of a $690 million revolving credit facility and a $160 million term loan A ($128 million outstanding as of March 31, 2017). Vistaprint Ltd. (Bermuda), Cimpress Schweiz GmbH, Vistaprint BV (Netherlands) and Cimpress USA Inc. are co-borrowers of the new debt.

The agency withdrew the ratings on the senior secured credit facilities due 2019.

S&P said the transaction is leverage neutral because Cimpress is using the proceeds from the new term loan A to pay down its outstanding revolver balance.

The agency expects Cimpress will continue to repay its revolver balance through the second half of 2017, and its adjusted leverage to decline to below 4 times by Dec. 31, 2017.

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