Outerwall enters into $150 million term loan, $600 million revolver

By Tali Rackner

Norfolk, Va., June 24 – Outerwall Inc. entered into a third amended and restated credit agreement on Tuesday with Bank of America, NA, replacing the second amended and restated credit agreement, according to an 8-K filing with the Securities and Exchange Commission.

The new credit facility consists of a $150 million amortizing term loan and a $600 million revolving line of credit maturing on June 24, 2019.

The revolving line includes a $75 million sublimit for the issuance of letters of credit, a $50 million sublimit for swingline loans and a $75 million sublimit for loans in certain foreign currencies available to the company and some wholly owned foreign subsidiaries.

There is a $200 million accordion option on the revolver.

Borrowings bear interest at Libor plus 125 basis points to 200 bps.

There is a commitment fee of 20 bps to 35 bps and a letter-of-credit fee of 125 bps to 200 bps.

As of Tuesday, the company had borrowed $150 million under the term loan and had $185 million outstanding under the revolver.

Bank of America, NA is the administrative agent, swingline lender and letter of credit issuer. Bank of America Merrill Lynch Pierce, HSBC Bank USA, NA, RBC Capital Markets and U.S. Bank NA are the joint lead arrangers and joint bookrunners. HSBC Bank, Royal Bank of Canada and U.S. Bank are syndication agents. Bank of Tokyo-Mitsubishi UFJ, Ltd. and Morgan Stanley Bank, NA are documentation agents.

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

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