Vistaprint 2015 Annual Report Download - page 51

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(*) The definitions of EBITDA, consolidated total indebtedness, and consolidated senior secured indebtedness are maintained in our credit
agreement included as an exhibit to our Form 8-K filed on February 13, 2013, as amended by amendments no. 1 and no. 2 to the credit
agreement included as exhibits to our Forms 8-K filed on January 22, 2014 and September 25, 2014.
The indenture under which our 7.0% senior unsecured notes due 2022 are issued contains various
covenants, including covenants that, subject to certain exceptions, limit our and our restricted subsidiaries’ ability to
incur and/or guarantee additional debt; pay dividends, repurchase shares or make certain other restricted
payments; enter into agreements limiting dividends and certain other restricted payments; prepay, redeem or
repurchase subordinated debt; grant liens on assets; enter into sale and leaseback transactions; merge, consolidate
or transfer or dispose of substantially all of our consolidated assets; sell, transfer or otherwise dispose of property
and assets; and engage in transactions with affiliates.
Our credit agreement and senior unsecured notes indenture also contain customary representations,
warranties and events of default. As of June 30, 2015, we were in compliance with all financial and other covenants
under the credit agreement and senior unsecured notes indenture.
Other debt. During the fourth quarter of fiscal 2015 we assumed term loans as part of the druck.at,
Exagroup and Easyflyer acquisitions. As of June 30, 2015 we had $11.5 million outstanding for those obligations
that are payable through September 2024.
In addition, we have an uncommitted line of credit with Santander Bank, N.A., and under the terms of the
agreement we may borrow up to $25.0 million at any time, with a maturity date of up to 90 days from the loan
origination date. Under the terms of our uncommitted line of credit, borrowings bear interest at a variable rate of
interest that may change from time to time. As of June 30, 2015 we had $4.5 million outstanding borrowings under
this line of credit.
Our expectations for fiscal year 2016. Our current liabilities continue to exceed our current assets; however,
we believe that our available cash, cash flows generated from operations, and our debt financing capacity will be
sufficient to satisfy our liabilities and planned investments to support our long-term growth strategy for the
foreseeable future. We endeavor to invest large amounts of capital that we believe will generate returns that are
above our weighted average cost of capital. We consider any use of cash that we expect to require more than 12
months to return our invested capital to be an allocation of capital. For fiscal 2016 we expect to allocate capital to
the following broad categories and consider our capital to be fungible across all of these categories:
• Large, discrete, internally developed projects that we believe can, over the longer term provide us with
materially important competitive capabilities and/or positions in new markets, such as investments in our
software, service operations and other supporting capabilities for our integrated platform, costs incurred for
post-merger integration efforts and expansion into new geographic markets.
• Other organic investments intended to maintain or improve our competitive position or support growth, such
as costs to develop new products and expand product attributes, production and IT capacity expansion,
VBU related advertising costs and the continued investment in our employees.
• Share purchases
• Corporate acquisitions and similar Investments
• Reduction of debt
Form 10-K