LITTLETON, Colo. - CPI Card Group Inc . (NASDAQ:PMTS (TSX:PMTS)), a payments technology company, has priced $285 million of 10.000% senior secured notes due 2029 through its subsidiary CPI CG Inc. The closing of the private offering is anticipated on July 11, 2024, subject to customary conditions.
The proceeds from the notes, along with available cash, are intended for the redemption of all outstanding 8.625% senior secured notes due 2026, including the payment of related fees, premiums, and expenses.
These general senior secured obligations will be guaranteed by CPI Card Group and its current and future wholly-owned domestic subsidiaries, excluding the issuer. The assets of the issuer and the guarantors, with certain exceptions, will secure the notes.
The offering targeted qualified institutional buyers under Rule 144A and certain non-U.S. persons in compliance with Regulation S, both under the Securities Act of 1933, as amended. These securities have not been registered under the Securities Act or any state securities laws, and unless so registered, may not be offered or sold in the United States absent an exemption from registration requirements.
This press release is not an offer to sell or a solicitation of an offer to buy the notes and related guarantees. The notes were offered only via a private offering memorandum and not to anyone in jurisdictions where such an offer or solicitation is not authorized.
Furthermore, this announcement does not constitute a redemption notice for the 2026 notes or an offer to redeem or repurchase any of the 2026 notes. Any such action will comply with the indenture governing the 2026 notes.
The information in this article is based on a press release statement from CPI Card Group.
InvestingPro Insights
As CPI Card Group Inc . (NASDAQ:PMTS) advances with its strategic financial restructuring, the latest data from InvestingPro provides a snapshot of the company's current market dynamics. With a market capitalization of $297.64 million, the company's valuation reflects its position in the payments technology sector. The price-to-earnings (P/E) ratio stands at 16.42, which aligns with the adjusted P/E ratio for the last twelve months as of Q1 2024 at 16.23, indicating a consistent valuation over the recent period.
Investors may find the company's strong return over the last three months, with a 62.99% price total return, particularly noteworthy, as it suggests a positive market reception to CPI Card Group's operational performance and strategic initiatives. This is further substantiated by the company's robust three-month price uptick, which complements the InvestingPro Tip highlighting the company's strong return over the past three months.
Moreover, the company's solid financial footing is underscored by the InvestingPro Tip that liquid assets exceed short-term obligations, providing CPI Card Group with a stable base to manage its debt and invest in growth opportunities. While the company does not pay dividends, as indicated by another InvestingPro Tip, this could imply a focus on reinvesting profits back into the business to fuel expansion and innovation.
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