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CPI Card closes on five-year $50 million asset-based revolver
Chicago, March 16 – CPI Card Group Inc. entered into a credit agreement with Wells Fargo Bank, NA on Monday with CPI CG Inc. as borrower, according to an 8-K filing with the Securities and Exchange Commission.
The credit facility includes an ABL revolver of up to $50 million. The revolver has a sublimit on letters of credit outstanding at any time of $10 million and a sublimit for swingline loans of $10 million.
The agreement also includes an uncommitted accordion feature for an additional $15 million.
The maturity on the revolver is March 15, 2026.
At closing, CPI had $15 million outstanding under the new agreement.
The commitment fee ranges from 37.5 basis points to 50 bps, based on the average daily borrowing capacity under the revolver over the immediately preceding month.
Interest ranges from Libor plus 125 bps to Libor plus 175 bps, also based on the average daily borrowing capacity.
The company sold an offering of $310 million of five-year secured notes on March 1.
Related to the note sale and the new facility, CPI Card Group terminated its existing credit facilities for a super senior credit agreement from March 6, 2020 with Guggenheim Credit Services, LLC as administrative agent and collateral agent. The company also terminated its first-lien credit agreement with GLAS USA LLC as administrative agent and GLAS Americas LLC as collateral agent.
The company had $30 million outstanding on the super senior credit facility and $304.7 million on the first-lien credit agreement. The notes and the new revolver were used to repay them both.
The super senior credit facility had a make-whole premium as an early termination penalty.
CPI Card Group is a Littleton, Colo.-based provider of payment solutions, including card production, card personalization, mobile technologies and fulfillment services.
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