Coinstar $300 million credit facility to launch Tuesday

By Sara Rosenberg

New York, June 7 - Coinstar Inc. is scheduled to hold a bank meeting on Tuesday for its proposed $300 million credit facility, according to a market source. JPMorgan and Lehman Brothers are the lead banks on the deal, with JPMorgan listed on the left.

The facility consists of a $50 million revolver and a $250 million term loan B.

Proceeds will be used to finance the $235 million cash purchase of American Coin Merchandising Inc. (ACMI).

Upon announcing the acquisition in late May, the company disclosed that it planned on primarily financing the transaction with a new term loan B due to "the state of the current debt markets."

But, no definitive details on the financing were available until now since the company was reviewing options "based upon market conditions, our rating, proposed covenants and interest rates," company officials previously stated in a conference call.

As part of the acquisition, Coinstar will not be assuming any of ACMI's existing debt. The transaction is expected to close in the third quarter of this year. Closing is contingent upon customary conditions including obtaining Hart-Scott-Rodino and other governmental approvals, securing contractual consents, and as was previously said, financing.

Coinstar is a Bellevue, Wash., owner and operator of automated self-service coin-counting machines. ACMI is a Louisville, Colo., owner and operator of coin-operated amusement vending equipment.

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