Vistaprint 2013 Annual Report Download - page 48

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February 8, 2018. Up to $50 million in borrowings may be made in Euro, Swiss Francs and such other non-United
States Dollar currencies as permitted by our lenders. The restated credit agreement also contains letter of credit
and swingline loan sublimits of $25 million each. We may from time to time, so long as no default or event of default
has occurred and is continuing, increase the loan commitments under the restated credit agreement. As of June 30,
2013 we may increase our loan commitments by up to $165 million by adding new commitments or increasing the
commitment of willing lenders. In order to mitigate our exposure to interest rate variability, we execute interest rate
swap contracts to fix a portion of our interest payments on our outstanding debt with varying maturities. See Note 4
in our accompanying consolidated financial statements for additional discussion.
In the next twelve months we may use, as needed, our revolving credit facility or additional sources of
borrowings in order to fund our ongoing operations, purchase our ordinary shares, or support our long-term growth.
We have other financial obligations that constitute additional indebtedness based on the definitions within the credit
facility. The amount available for borrowing under our credit facility as of June 30, 2013 is as follows:
In thousands
June 30, 2013
Maximum aggregate available for borrowing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 498,750
Outstanding borrowings of credit facility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238,750
Remaining amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260,000
Limitations to borrowing due to debt covenants and other obligations (1) . . . . . . . . . . . . . . . . . . . . (31,420)
Amount available for borrowing as of June 30, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 228,580
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(1) Our borrowing ability can be limited by our debt covenants each quarter. These covenants may limit our borrowing capacity depending on
our leverage, other indebtedness, such as installment obligations and letters of credit, and other factors that are outlined in the restated
credit agreement filed as an exhibit in our Form 8-K filed on February 13, 2013.
Debt Covenants. Our restated credit agreement contains financial and other covenants, including but not
limited to (1) limitations on our incurrence of additional indebtedness and liens, the consummation of certain
fundamental organizational changes or intercompany activities, investments and restricted payments including the
purchases of our ordinary shares or payments of dividends, and the amount of consolidated capital expenditures
that we may make in each of our fiscal years ending June 30, 2013 through 2018, and (2) financial covenants
calculated on a trailing twelve month, or TTM, basis that:
• our consolidated leverage ratio, which is the ratio of our consolidated indebtedness (*) to our TTM
consolidated EBITDA (*), will not exceed (i) 3.5 during the period from December 31, 2012 through
December 31, 2013; (ii) 3.25 during the period from March 31, 2014 through December 31, 2014; and (iii)
3.0 after March 31, 2015; and
• our interest coverage ratio, which is the ratio of our consolidated EBITDA to our consolidated interest
expense, will be at least 3.0.
At June 30, 2013, we were in compliance with all financial and other covenants under the credit agreement
in effect at that time.
(*) The definitions of EBITDA and consolidated indebtedness are maintained in the credit agreement included as an exhibit to Form 8-K filed on
February 13, 2013.
Form 10-K