Blackhawk Network gets revolver, LoC, term loan totaling $525 million

By Marisa Wong

Madison, Wis., April 1 - Blackhawk Network Holdings, Inc. entered into a credit agreement on March 28 with Wells Fargo Bank, NA as administrative agent. The credit agreement provides for the extension of credit in an aggregate principal amount of up to $525 million, consisting of a $200 million revolving credit facility, a $100 million seasonal letter-of-credit facility and a $225 million term loan facility, according to an 8-K filing with the Securities and Exchange Commission.

The company may increase loans under the revolving credit facility or letters of credit under the seasonal letter-of-credit facility by up to $50 million.

The revolver is scheduled to mature on the earlier of March 28, 2018 or the date of termination of the entire revolving credit commitment if the company chooses to reduce the revolving credit commitment to zero.

The term loan is due and payable under an amortization schedule, with 5% of the term loan amount due on March 21, 2015, 10% due on March 21, 2016, 15% due on March 21, 2017 and the remaining outstanding balance due on March 28, 2018.

Loans bear interest at Libor plus an applicable margin ranging from 125 basis points to 200 bps based on the company's consolidated total leverage ratio.

The company must also pay a letter-of-credit commission on the daily amount available to be drawn under letters of credit issued under the credit agreement at a rate of 125 bps to 200 bps, again based on the company's consolidated total leverage ratio, provided, however, that the commission on letters of credit secured by cash is payable at 75 bps.

There is also a commitment fee on the average daily unused portion of the revolver; that fee ranges from 20 bps to 35 bps, based on the company's consolidated total leverage ratio.

In addition, the credit agreement contains financial covenants requiring the company periodically to meet financial tests relating to consolidated leverage, interest coverage and minimum consolidated net worth.

Blackhawk is a prepaid payment network based in Pleasanton, Calif.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.