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Stamps.com gets $165 million credit facility for Endicia acquisition
By Wendy Van Sickle
Columbus, Ohio, Nov. 24 – Stamps.com Inc. entered into a $165 million credit agreement on Nov. 18, providing for a term loan and a revolving tranche, each equaling $82.5 million, according to an 8-K filed with the Securities and Exchange Commission.
Both tranches will mature Nov. 18, 2020.
The term loan facility will amortize in installments of: $1,031,250 for the first four fiscal quarters, commencing Dec. 31; $1,546,875 for the next four quarters; $2,062,500 for the next four quarters; $2,578,125 for the next four quarters; and $3,093,750 for the next four quarters, with the balance to be due at maturity.
Interest will range from Libor plus a margin of 125 basis point to 200 bps, depending on consolidated total leverage ratio. The commitment fee will range from 25 bps to 40 bps, also depending on consolidated total leverage ratio.
The revolver has a $1 million sublimit for letters of credit and a $5 million sublimit for swingline loans.
Wells Fargo Securities, LLC, Bank of America Merrill Lynch and J.P. Morgan Securities LLC acted as joint lead arrangers and joint bookrunners and Wells Fargo Bank, NA as administrative agent.
Proceeds of both tranches were used to partially fund Stamps.com’s acquisition of PSI Systems, Inc., which does business as Endicia, for about $215 million with the balance of the purchase price coming from cash on hand.
Stamps.com is an El Segundo, Calif.-based provider of internet-based postage services. Endicia is a Palo Alto, Calif.-based provider of high volume shipping technologies and solutions for use with the U.S. Postal Service and other postal partners.
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