Pricing Supplement
REGISTRATION STATEMENT NO. 333-104858
FILED PURSUANT TO RULE 424(b)(2)
PRICING SUPPLEMENT NO. 1 DATED September 9, 2003
(TO PROSPECTUS SUPPLEMENT DATED SEPTEMBER 2, 2003
AND PROSPECTUS DATED JULY 11, 2003)
DELUXE CORPORATION
MEDIUM-TERM NOTES
DUE NINE MONTHS OR MORE FROM DATE OF ISSUE
THE MEDIUM-TERM NOTES, AS FURTHER DESCRIBED BELOW AND IN THE ACCOMPANYING
PROSPECTUS SUPPLEMENT UNDER "DESCRIPTION OF NOTES", WILL BEAR INTEREST FROM THE
DATE OF ISSUANCE UNTIL THE PRINCIPAL AMOUNT THEREOF IS PAID OR MADE AVAILABLE
FOR PAYMENT AT THE RATE SET FORTH BELOW.
Agent(s): Credit Suisse First Boston LLC
Principal Amount: $50,000,000 Optional Conversion: N/A
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Price To Public: 100% Optional Repayment Date: N/A
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Underwriting Discount: .35%
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Percentage To Issuer: 99.65% Business Day Jurisdiction: New York City
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Settlement Date September 12, 2003 Initial Redemption Percentage: See Additional Provision
(Original Issue Date): ------------------ ------------------------
Specified Currency: USD Initial Redemption Date: See Additional Provision
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Authorized Denomination: $1,000 and integral Annual Redemption
multiples thereof Percentage Reduction: See Additional Provision
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Optional Extension of Maturity: N/A
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Maturity Date: September 15, 2006 Form of Note: Book Entry (Global Note)
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Interest Category: Fixed Rate
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Interest Rate: 2.75%
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Interest Rate Basis: N/A
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Maximum/Minimum
Interest Rate: N/A Initial Interest Reset Date: N/A
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Interest Reset Date(s): N/A
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Spread to Index: N/A
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Interest Payment Date: Semiannual beginning
March 15, 2004 Specify the applicable terms N/A
------------------ if Note is indexed, renewable, ------------------
dual currency, amortizing, or
OID, if applicable:
Interest Determination Date: Regular Record Date Day Count: 30/360
before Next Interest ------------------
Payment Date CUSIP: 24801XAA6
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First Interest Payment Date: March 15, 2004
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Settlement: September 12, 2003
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Pricing Supplement
Additional Provision
Optional Redemption. The Notes of this series are redeemable, in whole
or in part, at any time, at the option of the Company, at a Redemption Price
equal to the greater of:
o 100% of the principal amount of the Notes of this series then
outstanding to be redeemed, or
o the sum of the present values of the remaining scheduled payments of
principal and interest thereon from the Redemption Date to the
Maturity Date computed by discounting such payments to the Redemption
Date on a semi-annual basis (assuming a 360-day year consisting of
twelve 30-day months) at a rate equal to the sum of 5 basis points
plus the Adjusted Treasury Rate on the third Business Day prior to the
Redemption Date, as calculated by an Independent Investment Banker,
plus, in each case, accrued and unpaid interest, if any, to the Redemption Date.
"Adjusted Treasury Rate" means, with respect to any Redemption Date:
o the yield, under the heading which represents the average for the
immediately preceding week, appearing in the most recently published
statistical release designated "H.15(519)" or any successor
publication which is published weekly by the Board of Governors of the
Federal Reserve System and which establishes yields on actively traded
U.S. Treasury securities adjusted to constant maturity under the
caption "Treasury Constant Maturities," for the maturity corresponding
to the Comparable Treasury Issue (if no maturity is within three
months before or after the Remaining Life, yields for the two
published maturities most closely corresponding to the Comparable
Treasury Issue will be determined and the Adjusted Treasury Rate will
be interpolated or extrapolated from such yields on a straight line
basis, rounding to the nearest month); or
o if such release (or any successor release) is not published during the
week preceding the Redemption Date or does not contain such yields,
the rate per annum equal to the semi-annual equivalent yield to
maturity of the Comparable Treasury Issue, calculated using a price
for the Comparable Treasury Issue (expressed as a percentage of its
principal amount) equal to the Comparable Treasury Price for such
Redemption Date.
"Redemption Date" means the date fixed by the Company to redeem the
Notes.
"Comparable Treasury Issue" means the U.S. Treasury security selected
by an Independent Investment Banker as having a maturity comparable to the
remaining term of the Notes of this series to be redeemed that would be
utilized, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of such Notes ("Remaining Life") or, if, in the
reasonable judgment of the Independent Investment Banker, there is no such
security, then the Comparable Treasury Issue will mean the U.S. Treasury
security or securities selected by an Independent Investment Banker as having an
actual or interpolated maturity or maturities comparable to the remaining term
of the Notes.
"Comparable Treasury Price" means (1) the average of the Reference
Treasury Dealer Quotations for the Redemption Date, after excluding the highest
and lowest Reference Treasury Dealer Quotations, or (2) if the Independent
Investment Banker obtains fewer than three such Reference Treasury Dealer
Quotations, the average of all such quotations.
"Independent Investment Banker" means the Reference Treasury Dealer, or
if such firm is unwilling or unable to serve as such, an independent investment
banking institution of national standing appointed by the Company.
"Reference Treasury Dealer" means Credit Suisse First Boston LLC and
its respective successors; provided that if the foregoing ceases to be, and has
no affiliate that is, a primary U.S. Government securities dealer (a "Primary
Treasury Dealer"), the Company will substitute for it another Primary Treasury
Dealer.
"Reference Treasury Dealer Quotations" means, with respect to each
Reference Treasury Dealer and any Redemption Date, the average, as determined by
the Independent Investment Banker, of the bid and asked prices for the
Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) quoted in writing to the Independent Investment Banker at 5:00
p.m., New York City time, on the third Business Day preceding such Redemption
Date.
The Company will mail notice of redemption at least 30 days but not
more than 60 days before the applicable Redemption Date to each Holder of the
Notes of this series to be redeemed. If the Company elects to partially redeem
the Notes of this series, the Trustee will select in a fair and appropriate
manner the Notes to be redeemed. Notwithstanding Section 1104 of the Indenture,
the notice of such redemption need not set forth the Redemption Price but only
the manner of calculation thereof. The Company shall give the Trustee notice of
such Redemption Price immediately after the calculation thereof.
Upon the payment of the Redemption Price plus accrued and unpaid
interest, if any, to the date of redemption, interest will cease to accrue on
and after the applicable Redemption Date on the Notes or portions thereof called
for redemption.