CPI Card Group increases credit facility and announces partial note redemption

CPI Card Group Inc . (NASDAQ:PMTS), a payment technology company with a market capitalization of $275 million and strong financial health according to InvestingPro metrics, disclosed Monday that it entered into an amendment to its existing credit agreement, raising its available borrowing capacity. The company increased its asset-based revolving credit facility to $100 million from $75 million, according to a statement in a Securities and Exchange Commission filing. This move comes as the company maintains a healthy current ratio of 2.95, indicating strong ability to meet short-term obligations.

The amendment, dated July 2, 2025, was made with CPI CG Inc. as borrower, the lenders, and JPMorgan Chase (NYSE:JPM) Bank, N.A. as administrative and collateral agent. The revised agreement expands the maximum borrowing amount under the asset-based revolver.

In a separate event, CPI Card Group issued a notice of redemption on July 3, 2025, to redeem $20 million of its outstanding $285 million aggregate principal amount of 10.000% senior secured notes due 2029. The redemption is scheduled for July 15, 2025, and will be completed at a redemption price of 103.000% of par, plus accrued and unpaid interest up to the redemption date. The company stated that the redemption will be carried out in accordance with the terms of the indenture governing the notes.

These developments were reported in a press release statement included in the company’s SEC filing. CPI Card Group’s common stock is listed on the Nasdaq Global Market under the ticker PMTS (TSX:PMTS).

In other recent news, CPI Card Group Inc . reported a 10% increase in net sales for the first quarter of 2025, although the company faced challenges with a decrease in gross profit margin to 33.2% from 37.1% year-over-year. The company’s adjusted EBITDA declined by 8% to $21.2 million, and net income decreased by 12%, highlighting ongoing operational inefficiencies and increased production costs. In an effort to enhance its market presence, CPI Card Group announced the acquisition of AeroEye Solutions, which is expected to strengthen its digital offerings and market reach. The acquisition, financed through cash and a revolver, is anticipated to initially impact margins but is expected to be beneficial in the long term.

Analysts from D.A. Davidson and Lake Street Capital Markets have noted the strategic fit of AeroEye in CPI’s portfolio, emphasizing the potential for synergies and revenue growth. Despite current margin pressures, CPI Card Group reaffirmed its guidance for mid to high single-digit growth in net sales and adjusted EBITDA for 2025. The company is also navigating transition costs related to its new Indiana production facility, which are expected to affect financials in the short term. Additionally, CPI Card Group plans to leverage AeroEye’s tax benefits and reduce its net leverage ratio by 2026.

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