CompoSecure, Inc. 8-K

What Happened
CompoSecure, Inc. announced on January 14, 2026 that it completed a series of financing transactions to refinance roughly $2.1 billion of debt after completing its combination with Husky Technologies Limited on January 13, 2026. The refinancing package includes a private placement of $900.0 million of 5.625% Senior Secured Notes due February 1, 2033 (issued by CompoSecure Holdings, L.L.C.), a $1.2 billion term loan facility maturing in 2033, and a $400.0 million revolving credit facility maturing in 2031. Proceeds (together with certain borrowings under the new credit facilities) were used to repay Husky’s prior debt and to pay related fees and expenses.

Key Details

• $900.0M 5.625% Senior Secured Notes due Feb 1, 2033; interest semiannually (Feb 1 / Aug 1), issued Jan 14, 2026; notes are senior secured and fully guaranteed.
• $1.2B Term Loan Facility (matures 2033); variable interest (base rate + 1.25% or SOFR + 2.25%); 1.00% prepayment premium for prepayments within 6 months (with exceptions).
• $400.0M Revolving Credit Facility (matures 2031); $75.0M of LC capacity; variable margins depend on first‑lien leverage; springing leverage covenant applies if usage >35% (tested quarterly beginning ~Sept 30, 2026).
• Existing Credit Agreement terminated and repaid in full on the closing date with no early-termination penalties; Husky also redeemed $1.0B of its 9.00% senior secured notes (for ~ $1.04B) on Jan 13, 2026.
• Indenture includes customary covenants, events of default, change-of-control repurchase at 101%, and specified redemption schedules (including make-whole and stepped call prices before 2031). The 2033 Notes were sold to qualified institutional buyers or non-U.S. investors (Rule 144A / Reg S) and are not registered under the Securities Act.

Why It Matters
This refinancing extends maturities (to 2031 and 2033) and resets interest and security terms for the combined company, replacing Husky’s prior debt with a new capital structure. For investors, key implications include the company’s interest cost profile (fixed-rate notes plus a variable-rate term loan), the size and covenants of the new credit package that will affect leverage and financial flexibility, and restrictions on note transfers because the notes were privately placed. The new facilities also include typical limitations on dividends, additional debt and asset sales—factors that can influence future liquidity, cash flow available to shareholders, and the company’s ability to pursue acquisitions or other strategic actions.