Deluxe Receives Court Approval to Complete Comprehensive Refinancing
Deluxe Entertainment Services Group Inc. (“Deluxe” or the “Company”), the leading content creation to distribution company, announced today that it has received Court approval of its pre-packaged Chapter 11 plan of reorganization (the “Plan”) and intends to complete the restructuring transactions contemplated by the Plan and successfully emerge from Chapter 11.
Deluxe has served as a strong, collaborative and innovative partner for the global content creation and delivery industry for over a century. Upon emergence from the pre-packaged Chapter 11 court process, the Company will have a much stronger balance sheet with significantly reduced leverage and enhanced liquidity, making it well-positioned to carry on its unparalleled legacy for many years to come. Following the implementation of the financial restructuring, Deluxe’s long-term debt will be reduced by well more than half, and the Company will have access to $115 million of new financing to support its ongoing operations and investments.
“This is an important milestone for Deluxe — we have a strengthened balance sheet and new capital to continue our investments in services and technology. Deluxe will be in its strongest financial position in more than a decade, with the resources to lead the industry into the future,” said John Wallace, Chief Executive Officer of Deluxe. “We are incredibly grateful for the ongoing support we received from our employees, customers, vendors and other business partners during the last few months and are very are pleased to have achieved what we set out to do when we began the refinancing process.”
At a time when content creators and distributors require strong partners, Deluxe has never been better positioned to be that source of reliability with the richest portfolio of services and technical platforms in the industry. From the industry’s first feature films to today’s fully connected world of content, Deluxe has been a longstanding leader in the entertainment industry, embracing change as an opportunity to evolve into a stable, reliable partner that best meets customers’ needs. Today’s announcement cements Deluxe as the largest and most scaled operator across the media supply chain, providing unparalleled services to markets around the world. With a strong financial foundation in place, Deluxe is positioned to leverage its creative talent, innovative technology and distribution expertise to unify the media supply chain and revolutionize the way content creators, distributors and their partners manage workflows and collaborate.
Kirkland & Ellis, LLP is acting as legal counsel for the Company, PJT Partners is acting as its financial advisor, and AlixPartners is acting as its restructuring advisor. FTI Consulting, Inc. is acting as financial advisor for a majority group of its senior lenders, and Stroock & Stroock & Lavan LLP is acting as its legal counsel.