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Lexmark Completes Security Agreement with China CITIC Bank

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Lexmark International today announced that, as of April 2, 2018, it’s entered into a security agreement with China CITIC Bank, as collateral agent, for the benefit of the co-secured parties under the security agreement.

Subject to the terms of the security agreement, Lexmark granted to the collateral agent a first-priority lien on and security interest in (subject to permitted liens) on Lexmark assets.

Wilmington Trust, National Association, as trustee for the holders of the 2020 Senior Notes, is one of the co-secured parties under the security agreement and is entitled to the benefit of the lien and security interest granted by Lexmark pursuant to the security agreement.

All other lenders who are counter-parties to agreements with Lexmark relating to hedging or cash-management services that are approved by the collateral agent will, upon execution of a joinder agreement agreeing to be bound by the security agreement, be entitled to the benefit, on a pari passu basis, of the lien and security interest granted by Lexmark in the collateral pursuant to the security agreement.

Art Richards, Lexmark Treasurer, commented: “We are pleased to announce the completion of this agreement. Lexmark is a financially stable company with strong investor backing, and we are positioned for profitable growth.”

Investors may request access to Lexmark financial information here.

Two years ago, Lexmark was purchased by a Chinese consortium led by Apex Technology (now known as Ninestar) and PAG Asia Capital. Shan Weijian, chairman of PAG Asia Capital recently told Bloomberg  regarding Lexmark:   “2018 is performing ahead of budget.”

Lexmark is also said to be investing in hardware, improved efficiency, and reduced inventory levels under its new ownership. This said to put the company on a growth trajectory, even if it has led to a temporary rise in charges and expenses, according to Weijhn.

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