Moody’s rates Redbox B1, facility Ba3

Moody's Investors Service said it assigned Redbox Automated Retail, LLC a B1 corporate family rating and B2-PD probability of default rating.

The agency also assigned a Ba3 rating to the company's proposed first-lien credit facility, consisting of a $40 million senior secured revolving credit facility and a $400 million senior secured term loan.

The outlook is stable.

On July 26, Apollo Global Management, LLC entered into an agreement to acquire Outerwall, Inc., Redbox's parent company, in an all-cash transaction valued at roughly $1.6 billion (including net debt).

Outerwall's two main subsidiaries, Redbox and Coinstar, will be split up and operated, financed and managed independently going forward. As there are no cross guarantees or free flowing of cash or common management or services between the subsidiaries, the debt financing for these entities is separate and non-recourse from one another.

Apollo will use the proceeds from the credit facility along with equity to finance the portion of the acquisition associated with Redbox.

Outerwall’s current ratings, including the Ba3 corporate family rating, Ba3- probability of default rating and B1 unsecured rating, are expected to be withdrawn at the close of this transaction, with all outstanding debt to be repaid.

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