Stamford, Connecticut, USA, 01 February 2010 – Cenveo, Inc. (NYSE: CVO) announced today that its wholly-owned subsidiary, Cenveo Corporation, has priced an offering of USD 400 million aggregate principal amount of senior second lien notes due 2018. The notes will have an interest rate of 8.875% per annum and will be issued at a price of 99.310% of their face value.
The notes offering is expected to close on 05 February 2010, subject to customary closing conditions. The net proceeds of the notes will be used by Cenveo to refinance at least USD 300 million of term loans outstanding, with the remaining amounts to be used first to pay down revolving credit loans under Cenveo Corporation’s senior secured credit facilities with any remaining amounts to be used to further pay down term loans outstanding.
“We were pleased to execute this financing," said Robert G. Burton, chairman and chief executive officer. "The offering will enable us to achieve a couple of previously communicated goals, namely extending our debt maturities and strengthening our liquidity position. This transaction demonstrates that we are able to access the capital markets at attractive rates. The offering, along with our recent amendment to our credit facilities, will recapitalize a portion of our balance sheet, position us for future growth, and will enhance our ability to execute on our long-term businesses plans and to achieve our stated goals.”
The notes have not been and will not initially be registered under the Securities Act of 1933, as amended, or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.
Cenveo (NYSE: CVO), headquartered in Stamford, Connecticut, is a leader in the management and distribution of print and related products and solutions. The company provides its customers with low-cost alternatives within its core businesses of labels and forms manufacturing, packaging and publisher offerings, envelope production, and printing; supplying one-stop solutions from design through fulfillment. Cenveo delivers everyday for its customers through a network of production, fulfillment, content management, and distribution facilities across the globe.