Redbox plans to launch $440 million credit facility on Sept. 7

By Sara Rosenberg

New York, Aug. 31 – Redbox Automated Retail LLC is set to hold a bank meeting on Sept. 7 to launch its $440 million senior secured credit facility, according to a market source.

Jefferies Finance LLC, Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC are the joint bookrunners and joint lead arrangers on the Redbox debt.

The facility consists of a $40 million revolver and a $400 million first-lien term loan, the source said.

Based on filings with the Securities and Exchange Commission, the revolver is expected to mature in 4.5 years, the term loan is expected to mature in five years, and the term loan is anticipated to have a 1% Libor floor and 101 soft call protection for one year.

Filings also said that the credit facility would have a net total leverage covenant.

The credit facility is being done in connection with the buyout of Redbox’s parent company, 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 on the buyout is expected during the third quarter, subject to satisfaction of a minimum tender condition, the receipt of regulatory approvals and other customary conditions.

Redbox is a provider of DVD, Blu-ray and video game rentals via automated retail kiosks.

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