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Redbox firms $400 million five-year term loan at Libor plus 750 bps, revises OID
By Sara Rosenberg
New York, Sept. 22 – Redbox Automated Retail LLC set pricing on its $400 million five-year first-lien term loan at Libor plus 750 basis points, the high end of the Libor plus 725 bps to 750 bps talk, and widened the original issue discount to 97 from 98.5, according to a market source.
The term loan still has a 1% Libor floor and 101 soft call protection for one year.
Earlier in syndication, amortization on the term loan was changed to 17.5% in year one and 15% per annum thereafter, from 15% per annum, the excess cash flow sweep was revised to 85% in year one, 75% in year two and 50% thereafter, from starting at 75% and then stepping down, the 12-month MFN sunset was removed and some baskets were modified.
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 the deal.
Recommitments are due by the end of the day on Friday, 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 $52.00 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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