Redbox launches $400 million term loan at Libor plus 725-750 bps

By Sara Rosenberg

New York, Sept. 7 – Redbox Automated Retail LLC launched on Wednesday its $400 million five-year first-lien term loan with price talk of Libor plus 725 basis points to 750 bps with a 1% Libor floor and an original issue discount of 98.5, according to a market source.

The term loan has 101 soft call protection for one year and amortization of 15% per annum, the source said.

The company’s $440 million senior secured credit facility (Ba3/B+) also includes a $40 million 4.5-year revolver.

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

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

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 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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