Coinstar schedules Thursday launch for $745 million credit facility

By Sara Rosenberg

New York, Sept. 6 – Coinstar LLC will hold a bank meeting at 10 a.m. ET in New York on Thursday to launch its $745 million senior secured credit facility, according to a market source.

Bank of America Merrill Lynch, Jefferies Finance LLC, Credit Suisse Securities (USA) LLC and Barclays are the joint bookrunners and joint lead arrangers on the deal.

The facility consists of a $75 million five-year revolver, a $535 million seven-year covenant-light first-lien term loan and a $135 million eight-year covenant-light second-lien term loan.

Based on filings with the Securities and Exchange Commission, the first-lien term loan is expected to have a 1% Libor floor and 101 soft call protection for six months and the second-lien term loan is expected to have a 1% Libor floor and call protection of 102 in year one and 101 in year two.

Proceeds will be used to back the buyout of Coinstar’s parent company, Bellevue, Wash.-based Outerwall Inc., by Apollo Global Management LLC for $52.00 per share in cash. The transaction has a total enterprise value of about $1.6 billion, including net debt.

Closing is expected during the third quarter, subject to satisfaction of a minimum tender condition, the receipt of regulatory approvals and other customary conditions.

Coinstar is a fully automated network of self-service coin-counting machines.

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