Outerwall lifts revolver by $150 million, adds $200 million term loan

By Marisa Wong

Madison, Wis., Dec. 10 - Outerwall Inc. amended its second amended and restated credit agreement with Bank of America, NA as administrative agent to increase its lending capacity under the revolving credit line by $150 million and to establish an additional term loan, according to an 8-K filing with the Securities and Exchange Commission.

The second amended and restated credit agreement, dated July 15, 2011, provided a $175 million five-year amortizing term loan and a $450 million revolving line of credit, along with an up to $250 million accordion.

The accordion was upsized on Monday by $100 million to $350 million, and the company exercised the accordion to increase the revolving credit line to $600 million and add a $200 million term loan.

The terms of the new term loan will be generally the same as those of the existing term loan, except for the following:

• Until the first business day following the date a compliance certificate is delivered under the credit agreement for the fiscal quarter ending March 31, the applicable interest rates for loans under the additional term loan will be no less than those corresponding to pricing level 3 under the credit agreement; and

• The principal balance of the loans under the additional term loan will be payable on the following dates and in the following amounts: 2.5% on each of the last business days of March and June 2014; 3.125% on each of the last business days of September and December 2014, March, June, September and December 2015 and March and June 2016; and the remaining balance on July 15, 2016.

The company is in the process of taking out loans of $200 million under the additional term loan, which was expected to fund on Tuesday, the filing noted.

The company said in a press release that the $350 million expansion of its credit facility will enable it to meet its target leverage ratio of 1.75 times to 2.25 times in the first quarter of 2014.

Based in Bellevue, Wash., Outerwall makes retail kiosks.

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