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Outerwall releases more pricing details on buyout-related facilities
By Marisa Wong
Morgantown, W.Va., Sept. 27 – Outerwall Inc. disclosed more pricing details on its credit facilities obtained in connection with its acquisition by Apollo Global Management LLC in an 8-K filed Tuesday with the Securities and Exchange Commission.
The facilities are split between $770 million of senior secured credit facilities at Outerwall and $440 million of senior secured credit facilities at Outerwall’s subsidiary, Redbox Automated Retail LLC.
The Outerwall credit facilities consist of a $75 million five-year revolver, a $560 million seven-year covenant-light first-lien term loan with a 1% Libor floor and 101 soft call protection for six months and a $135 million eight-year covenant-light second-lien term loan with a 1% Libor floor and call protection of 102 in year one and 101 in year two.
Pricing on the revolver is Libor plus 450 basis points, pricing on the first-lien term loan is Libor plus 425 bps, and pricing on the second-lien term loan is Libor plus 875 bps.
As for the Redbox facility, it consists of a $40 million 4.5-year revolver and a $400 million five-year first-lien term loan with a 1% Libor floor and 101 soft call protection for one year.
Pricing is equal to Libor plus 750 bps. The commitment fee under the revolver is 50 bps.
Bank of America Merrill Lynch, Jefferies Finance LLC, Barclays and Credit Suisse Securities (USA) LLC are the joint bookrunners and joint lead arrangers on the Outerwall debt.
Jefferies, Bank of America and Credit Suisse are the joint bookrunners and joint lead arrangers on the Redbox debt.
The Apollo transaction closed on Tuesday.
Outerwall is a Bellevue, Wash.-based provider of retail products and services via self-service interactive kiosks. Redbox is a provider of DVD, Blu-ray and video game rentals via automated retail kiosks.
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