Deluxe Corporation Announces Pricing of Senior Secured Notes Offering

Minneapolis-based Deluxe Corporation (NYSE: DLX) revealed the pricing of $450 million aggregate principal amount of its senior secured notes due 2029, according to an 8-K filing on November 19, 2024. Originally slated at $400 million, the offering is set to close on December 3, 2024, subject to standard closing conditions. These Notes will carry an annual interest rate of 8.125%, payable semi-annually.

The offering is specifically targeted towards qualified institutional buyers and certain non-U.S. persons outside the United States under exemptions from registration provided by Rule 144A and Regulation S under the Securities Act of 1933. Deluxe Corporation plans to utilize the net proceeds from this offering, in conjunction with borrowings from new senior secured credit facilities, to refinance existing term loans and to cover associated fees and expenses. The offering banks on an amendment and restatement of the company’s current credit agreement to establish new senior secured credit facilities with a revolving credit commitment of $400 million and a term loan of $500 million, extending maturity to February 1, 2029.

The press release emphasized that the notes and related guarantees have not been registered under the Securities Act or state securities laws, and thus cannot be offered or sold within the United States unless registered or under an applicable exemption.

Deluxe Corporation, known as a Trusted Payments and Data company, supports business growth by providing payment, financial technology, and brand services to businesses at every stage of development. With a robust scale servicing millions of small businesses, significant financial institutions, and major consumer brands, Deluxe handles over $2 trillion in annual payment volume.

Forward-looking statements within the announcement highlighted that while management intends to execute strategies for revenue and earnings growth, external factors such as economic conditions, legislative changes, and market competition could affect results. These statements remain current intentions from management, subject to potential risks and uncertainties that may impact actual outcomes.

The 8-K filing brought a detailed perspective on Deluxe Corporation’s financial dealings, shedding light on its strategic moves within the current market landscape. Investors and stakeholders are advised to review the company’s Form 10-K for comprehensive insights and updates on these financial maneuvers.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Deluxe’s 8K filing here.

About Deluxe

Deluxe Corporation provides technology-enabled solutions to enterprises, small businesses, and financial institutions in the United States, Canada, and Australia. It operates through Merchant Services, B2B Payments, Data Solutions, and Print segments. The Merchant Services offers credit and debit card authorization and payment systems, as well as processing services primarily to small and medium-sized retail and service businesses.