Vistaprint 2009 Annual Report Download - page 67

through April 1, 2016, at which time the rate will be reset. At June 30, 2009, there was $5.4 million
outstanding under this credit agreement.
In November 2004, VistaPrint B.V. amended the existing credit agreement with ABN AMRO to include
an additional 1.2 million euro loan. The borrowings were used to finance a new printing press for the Venlo
production facility. The loan is secured by the printing press and is payable in quarterly installments of
50,000 euro ($71,000 at June 30, 2009), beginning on April 1, 2005 and continuing through 2011. Prior to
April 1, 2006, interest on the loan accrued at a EURIBOR rate plus 1.40%. On April 1, 2006, we elected a
fixed rate option and the interest rate was fixed at 5.10% over the remaining term of the loan. At June 30,
2009, there was $0.5 million outstanding under this amendment to the credit agreement.
In June 2009, VistaPrint B.V. further amended the existing credit agreement to accommodate the
changes to our legal structure from the change of domicile. Following this amendment, the credit
agreement with ABN AMRO requires us to cause VistaPrint B.V. to maintain tangible net worth at a
minimum of 40% of VistaPrint B.V.’s adjusted balance sheet and to maintain a total debt to EBITDA
ratio of no more than 2.5. In addition, the Credit Agreement restricts VistaPrint B.V.’s ability to incur
additional indebtedness. VistaPrint B.V. was in compliance with all loan covenants at June 30, 2009
and 2008. There are no restrictions on VistaPrint B.V.’s ability to pay dividends.
In November 2004, VistaPrint North American Services Corp., our Canadian production
subsidiary, entered into an $11.0 million credit facility with Comerica Bank—Canada. The borrowings
were used to finance new equipment purchases and the construction of a production facility located in
Windsor, Ontario, Canada. The loan is secured by guarantees from Vistaprint Limited and two of our
subsidiaries and is payable in monthly installments beginning November 1, 2005 and continuing
through 2009, plus interest, with the remaining balance of $5,960 to be paid in November 2009. On
December 1, 2005, the interest rates for the equipment term loan and the construction loan were fixed
at 6.47% and 6.37%, respectively, over the remaining terms of the loan. At June 30, 2009, there was
$6.4 million outstanding under this credit facility.
In December 2005, VistaPrint North American Services Corp. amended its existing credit
agreement with Comerica Bank to include an additional $10.0 million equipment term loan. The
borrowings have been used to finance new equipment purchases for the Windsor production facility.
The loan is secured by guarantees from Vistaprint Limited and two of our subsidiaries and is payable in
monthly installments beginning on December 1, 2006 and continuing through 2010, plus interest, with
the remaining balance of $4,667 to be paid in December 2010. Interest on the loan was based, at our
election at the beginning of the applicable period, on a LIBOR rate plus 3.00%, or Comerica’s prime
rate plus 0.5%, or a fixed rate option. As of June 30, 2009, the interest rates on the various borrowings
to date under this term loan have been fixed over the remaining term of the loan at rates ranging from
7.82% to 8.50%. At June 30, 2009, there was $6.6 million outstanding under this term loan.
The credit agreement with Comerica Bank includes covenants that require us to, under certain
circumstances, maintain a consolidated ratio of funded debt to cash flow at a maximum of 2.50 to 1.00
and VistaPrint North American Services Corp. to maintain a minimum debt service coverage ratio of
1.40 to 1.00 unless we maintain at least $30.0 million in unrestricted cash and cash equivalents. Debt
service coverage ratio is defined as the ratio of cash flow to the sum of required principal payments
plus cash interest paid. As of June 30, 2009, the minimum debt service coverage covenant did not
apply because we maintained at least $30.0 million in unrestricted cash and cash equivalents. We and
VistaPrint North American Services Corp. were in compliance with all loan covenants at June 30, 2009.
Operating Leases. We rent office space under operating leases expiring on various dates
through 2018. We recognize rent expense on our operating leases that include free rent periods and
escalations in scheduled rent payments on a straight-line basis from the commencement of the lease.
Form 10-K
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