Pitney Bowes Inc. (NYSE: PBI), a technology-driven company that provides digital shipping solutions, mailing innovation, and financial services to clients globally, today announced that it has repriced its $585 million Term Loan B due March 2032, reducing the applicable interest rate margin by 75 basis points.
The repricing lowers the applicable margin over the Secured Overnight Financing Rate from 375 basis points to 300 basis points. The transaction closed on September 29, with no other changes to the facility’s existing terms or maturity date. Based on the current outstanding principal balance, the repricing is expected to reduce annual interest expense by approximately $4 million.
The repricing builds on the Company’s recently completed tender offer for its 6.70% Notes due 2043 and 5.250% Medium-Term Notes due 2037, which retired more than $46 million of debt at a discount to par. It also follows S&P Global Ratings’ upgrade of Pitney Bowes’ issuer credit rating to 'BB-' from 'B+'.
Chief Financial Officer Paul Evans commented:
“Over the past year, we have upsized and extended both our revolving credit facility and Term Loan A, fully repaid our 2027 Notes, and retired over $126 million of debt through two tender offers at approximately 86 cents on the dollar, capturing roughly $18 million of value for shareholders. Together with today’s repricing, these actions reduce our annualized interest expense by approximately $13 million and continue to bring down leverage to levels that lower our borrowing costs under our bank facilities.”
PBI shares gained 26, or 1.6%, to $16.56.
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