XBP Europe Holdings (XBP) Completes $48M Financing

XBP Europe Holdings, Inc (NASDAQ: XBP) today announced that certain of the Company’s subsidiaries have entered into a comprehensive financing agreement with HSBC UK Bank plc (“HSBC”). The new agreement refinances the Company’s UK subsidiary's existing indebtedness and provides up to $33 million of incremental liquidity. This is in addition to the current non-recourse factoring program in place by certain of the Company’s subsidiaries for up to €15 million.

“The strategic financing transaction with incremental borrowing capacity greatly enhances our liquidity and supports our runway for growth, including inorganic growth,” said Andrej Jonovic, Chief Executive Officer of XBP Europe.

The new $48 million¹ financing agreement consists of: (i) a $4 million Term Loan A facility ("Term Loan A"), (ii) an $11 million Term Loan B facility ("Term Loan B" and, together with Term Loan A, the "Term Loans"), and (iii) a $15 million multicurrency revolving credit facility (the "Revolving Credit Facility"), all at an applicable reference rate plus 3.25%, plus an accordion feature for up to an additional $18 million. The Term Loans have a maturity of four years post completion, while the Revolving Credit Facility has a maturity of three years with an option to extend up to an additional year at HSBC’s discretion. The availability of the accordion is subject to HSBC’s discretion.

The proceeds from the Term Loan A and Term Loan B facility were used to repay existing indebtedness under the Company’s UK subsidiary’s prior term loans and revolving credit facilities. No penalties were incurred in connection with such repayment. The proceeds from the Revolving Credit Facility will be used for general corporate purposes.

¹ Term Loan A and the Revolving Credit Facility are denominated in British Pounds, and Term Loan B is denominated in Euros. USD figures are determined based on current exchange rates of approximately GBP/USD of 1.26 and EUR/USD of 1.07.

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