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Cimpress Prices Its Senior Notes Offering Worth $525 Million
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Cimpress plc (CMPR - Free Report) recently priced its earlier announced private offering of senior notes worth $525 million in aggregate principal amount. The offering comprises 7.375% senior notes due to expire in 2032.
It is worth mentioning here that the company’s shares lost 0.4% yesterday, ending the trading session at $79.94.
Inside the Headlines
As communicated by the company, the notes have been priced at 100% of the principal amount. Interest rates on the notes will be paid semi-annually. Subject to customary conditions, this offering is anticipated to close on Sept. 26, 2024.
With the completion of the notes offering, CMPR plans to amend its existing credit agreement by extending its revolving credit facility’s maturity and adjusting the interest rate relevant to any loans under this facility.
The company will use the net proceeds, along with the cash on hand, to fund the full redemption of its existing 7% senior notes due 2026. The remaining net proceeds will be used to pay all related fees and expenses associated with the offering and the amendment of the credit agreement.
The offering of senior notes will likely increase CMPR’s debt obligations and hurt profitability. However, prepaying part of certain indebtedness will offer some relief. At the end of fourth-quarter fiscal 2024 (ended June 2024), Cimpress’ long-term debt remained high at $1.6 billion.
CMPR’s Zacks Rank & Price Performance
Cimpress, with a $2 billion market capitalization, currently carries a Zacks Rank #3 (Hold). The company has been witnessing strength across the Vista, National Pen and Upload & Print segments.
The Vista unit is benefiting from new product introductions, while growth in the e-commerce channel is driving the National Pen segment. The strong order rate for products is driving the performance of the Upload & Print unit. However, high debt obligations remain a concern for the company.
Image Source: Zacks Investment Research
CMPR’s shares have lost 3.5% in the past three months compared with the industry’s 6% decline.
The Zacks Consensus Estimate for fiscal 2025 (ended June 2025) earnings per share is pegged at $4.40, which has increased 3.8% in the past 60 days.
FLS delivered a trailing four-quarter average earnings surprise of 18.2%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2024 earnings has increased 3.8%.
Monro, Inc. (MNRO - Free Report) presently carries a Zacks Rank #2. In the past 60 days, the Zacks Consensus Estimate for MNRO’s fiscal 2025 earnings has increased 28%.
Parker-Hannifin Corporation (PH - Free Report) currently carries a Zacks Rank of 2. PH delivered a trailing four-quarter average earnings surprise of 11.2%. In the past 60 days, the consensus estimates for Parker-Hannifin’s fiscal 2025 earnings have increased 1.1%.
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Cimpress Prices Its Senior Notes Offering Worth $525 Million
Cimpress plc (CMPR - Free Report) recently priced its earlier announced private offering of senior notes worth $525 million in aggregate principal amount. The offering comprises 7.375% senior notes due to expire in 2032.
It is worth mentioning here that the company’s shares lost 0.4% yesterday, ending the trading session at $79.94.
Inside the Headlines
As communicated by the company, the notes have been priced at 100% of the principal amount. Interest rates on the notes will be paid semi-annually. Subject to customary conditions, this offering is anticipated to close on Sept. 26, 2024.
With the completion of the notes offering, CMPR plans to amend its existing credit agreement by extending its revolving credit facility’s maturity and adjusting the interest rate relevant to any loans under this facility.
The company will use the net proceeds, along with the cash on hand, to fund the full redemption of its existing 7% senior notes due 2026. The remaining net proceeds will be used to pay all related fees and expenses associated with the offering and the amendment of the credit agreement.
The offering of senior notes will likely increase CMPR’s debt obligations and hurt profitability. However, prepaying part of certain indebtedness will offer some relief. At the end of fourth-quarter fiscal 2024 (ended June 2024), Cimpress’ long-term debt remained high at $1.6 billion.
CMPR’s Zacks Rank & Price Performance
Cimpress, with a $2 billion market capitalization, currently carries a Zacks Rank #3 (Hold). The company has been witnessing strength across the Vista, National Pen and Upload & Print segments.
The Vista unit is benefiting from new product introductions, while growth in the e-commerce channel is driving the National Pen segment. The strong order rate for products is driving the performance of the Upload & Print unit. However, high debt obligations remain a concern for the company.
Image Source: Zacks Investment Research
CMPR’s shares have lost 3.5% in the past three months compared with the industry’s 6% decline.
The Zacks Consensus Estimate for fiscal 2025 (ended June 2025) earnings per share is pegged at $4.40, which has increased 3.8% in the past 60 days.
Stocks to Consider
Some better-ranked companies are discussed below.
Flowserve Corporation (FLS - Free Report) currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
FLS delivered a trailing four-quarter average earnings surprise of 18.2%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2024 earnings has increased 3.8%.
Monro, Inc. (MNRO - Free Report) presently carries a Zacks Rank #2. In the past 60 days, the Zacks Consensus Estimate for MNRO’s fiscal 2025 earnings has increased 28%.
Parker-Hannifin Corporation (PH - Free Report) currently carries a Zacks Rank of 2. PH delivered a trailing four-quarter average earnings surprise of 11.2%. In the past 60 days, the consensus estimates for Parker-Hannifin’s fiscal 2025 earnings have increased 1.1%.