S&P ups Cimpress, rates facility BB

S&P said it upgraded Cimpress plc’s rating to BB- from B+ and its senior unsecured notes to B from B-. The recovery rating on the notes is unchanged at 6. Concurrently, the agency a BB rating to its planned $1.4 billion first-lien credit facility, comprising a $795 million term loan, a €300 million term loan and a $250 million revolving credit facility.

“Although its leverage will remain elevated at about 4.8x, as of March 2021 on a trailing 12-month basis, we expect its leverage will gradually decline below 4x over the next 12 months as it laps weaker quarters in the previous year, when its operations saw a significant impact from lockdowns imposed following the onset of the pandemic,” S&P said in a press release.

Cimpress will use the loan proceeds to redeem its $300 million second-lien debt when eligible to do so on or shortly after May 15. The proceeds will also be used to repay its term loan and all outstanding balance on its $850 million revolving credit facility, which will be reduced to $250 million.

The outlook is stable.

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