CPI Card Group entered into a $75 million secured asset based revolving credit facility, which replaced its existing $75 million facility. According to a related 8-K Filing, JPMorgan Chase Bank served as lender, administrative agent and collateral agent on the facility. Concurrently, the company closed the previously announced private offering by its wholly-owned subsidiary, CPI CG, of $285 million aggregate principal amount of its 10.000% senior secured notes due 2029 and related guarantees.
The issuer used the net proceeds from the notes offering, together with cash on hand, to redeem all of the issuer’s outstanding 8.625% senior secured notes due 2026 and to pay related fees, premiums and expenses.
The notes are general senior secured obligations of the issuer and guaranteed by the company and all of its current and future wholly-owned domestic subsidiaries (other than the issuer) that guarantee the ABL revolver, and are secured by substantially all of the assets of the issuer and the guarantors, subject to customary exceptions.
The 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, 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.
