Pitney Bowes Cuts Term Loan Margin by 75bps, Saves $4M Annually
PBI sits 81% above its 52-week low of $8.95.
Summary
Pitney Bowes repriced its $585M Term Loan B due 2032, cutting the SOFR margin from 375bps to 300bps. The deal closed September 29 and is expected to reduce annual interest expense by about $4 million. This follows the recent tender offer that retired over $46M of debt at a discount and an S&P upgrade to BB-. The CFO notes these actions together reduce annualized interest expense by roughly $13 million. The lower borrowing costs and improved credit profile give management more flexibility for share buybacks and investments.
At the time of this announcement, PBI was trading at $16.17 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $2.2B. The 52-week trading range was $8.95 to $19.07. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: BusinessWire.