Outerwall talks $300 million notes at 5 7/8% area, pricing Wednesday

By Paul A. Harris

Portland, Ore., June 2 - Outerwall Inc. talked its $300 million offering of seven-year senior notes (Ba3/BB-) to yield in the 5 7/8% area on Wednesday, according to a market source.

The yield talk comes in line with earlier whisper that had the deal coming in a high 5% yield context, according to a trader.

Pricing is set for Wednesday.

HSBC Securities (USA) Inc., BofA Merrill Lynch, US Bancorp and RBC Capital Markets are the joint bookrunners for the Rule 144A and Regulation S with registration rights offer.

Comerica, Morgan Stanley & Co., BBVA, BMO Securities and Mitsubishi UFJ are the co-managers.

The notes come with three years of call protection.

Proceeds will be used to repay bank debt, with a portion of the proceeds possibly set aside for general corporate purposes which may include but are not limited to maintenance or repayment of other outstanding debt, acquisitions or other investments, and the payment of other corporate expenses.

Outerwall is a Bellevue, Wash.-based kiosk retail services provider.

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