Coinstar releases first- and second-lien term loan talk with launch

By Sara Rosenberg

New York, Sept. 8 – Coinstar LLC released price talk on its $535 million seven-year covenant-light first-lien term loan (B1/B) and $135 million eight-year covenant-light second-lien term loan (Caa1/CCC+) in connection with its bank meeting on Thursday, according to a market source.

The first-lien term loan is talked at Libor plus 425 basis points to 450 bps with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked in the Libor plus 875 bps area with a 1% Libor floor and a discount of 98.5, the source said.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The company’s $745 million senior secured credit facility also provides for a $75 million five-year revolver (B1/B).

Bank of America Merrill Lynch, Jefferies Finance LLC, Credit Suisse Securities (USA) LLC, Barclays and Deutsche Bank Securities Inc. are the joint lead arrangers on the deal.

Commitments are due on Sept. 21, the source added.

Proceeds will be used to back the buyout of Coinstar’s parent company, Bellevue, Wash.-based Outerwall Inc., by Apollo Global Management LLC for $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.

Coinstar is a fully automated network of self-service coin-counting machines.

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