Rewards Network investors may put 3.25% convertibles on Oct. 15

By Susanna Moon

Chicago, Aug. 11 - Rewards Network Inc. said holders may require the company to repurchase the company's 3.25% convertible subordinated debentures on Oct. 15.

As of June 30, $52.9 million of the notes was outstanding.

Funding for the repurchase will come from cash reserves and borrowing under its senior secured revolving credit facility, according to a press release.

The company said it amended the facility with RBS Business Capital on Aug. 11 to allow up to $15 million to be used to repurchase its 3.25% convertibles, to increase the facility to up to $40 million and to extend the term to August 11, 2011.

Under the facility, RBS has committed up to $25 million and agreed to obtain an additional commitment of $15 million from one or more other financial institutions.

"This facility should give us the flexibility to repurchase the debentures and to support our growth efforts over the next several years," Chris Locke, chief financial officer of Rewards Network, said in the release.

The company issued $70 million of the notes in October 2003. They are callable after five years and are putable in years five, 10 and 15.

Rewards Network is a Chicago-based provider of marketing services and frequent dining programs to the restaurant industry.

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