Outerwall plans $1.19 billion in debt financing with Apollo buyout

By Sara Rosenberg

New York, July 28 – Outerwall Inc. revealed in an 8-K filed with the Securities and Exchange Commission on Thursday that it has received a total of $1,185,000,000 in debt commitments in connection with its acquisition by Apollo Global Management LLC.

Of the total amount, Bank of America Merrill Lynch, Jefferies Finance LLC, Barclays and Credit Suisse Securities (USA) LLC have committed $745 million in debt financing with respect to the post-merger Outerwall business.

And, Jefferies, Bank of America and Credit Suisse have committed $440 million in debt financing with respect to the post-merger business of Outerwall’s subsidiary, Redbox Automated Retail LLC.

Other funds for the transaction will come from $630 million in equity.

Under the agreement, Outerwall stockholders will receive $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.

Outerwall is a Bellevue, Wash.-based provider of retail products and services via self-service interactive kiosks.

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