Cardtronics Delivers Notice of Redemption of $100.0 Million Senior Subordinated Notes -- Series B Due 2013
July 21 2010 - 5:11PM
Cardtronics, Inc. (Nasdaq:CATM), the world's largest non-bank owner
of ATMs, announced today that it has initiated a full redemption of
its $100.0 million 9.25% Senior Subordinated Notes – Series B due
in 2013 (the "Series B Notes"). The Series B Notes will be redeemed
on August 20, 2010, at a redemption price of 102.313% of the
principal amount thereof, plus accrued and unpaid interest through
August 20, 2010. The Notice of Redemption for the Series B Notes
was sent to all registered holders on July 21, 2010.
The redemption of the notes will be funded with approximately
$30 million of available cash on hand plus approximately $70
million of borrowings under the Company's recently-executed, $175.0
million revolving credit facility. This new facility, which
currently has no borrowings outstanding, was executed on July 15,
2010 and replaced the Company's previous facility of the same
amount. It is led by JPMorgan Chase and Bank of America and
established, among other things, the Company's ability to redeem or
otherwise repurchase its senior subordinated notes.
"Our new bank facility and the notes redemption are targeted to
achieve three objectives," said Chris Brewster, Cardtronics' Chief
Financial Officer. "Those are to enhance our financial
flexibility, to reduce leverage, and to reduce interest expense. We
now have more flexibility to use our free cash flow and drawings
under the revolving credit facility to achieve those
objectives."
"Specifically, the notes redemption transaction utilizes this
flexibility to significantly reduce annual interest expense by
applying available cash (which is currently earning 0.5% per annum)
and bank borrowings (which currently cost approximately 3% per
annum) to redeem bonds on which we are paying an interest rate of
9.25% per annum," Mr. Brewster commented. "We expect to continue to
generate significant free cash flow and now have the flexibility to
use that cash flow over time to pay down the bank debt taken on to
fund the bond repurchase, which will further reduce leverage and
interest expense."
In connection with the redemption of the Series B Notes, the
Company will be required to record a one-time, pre-tax, non-cash
charge of approximately $3.3 million in the third quarter of 2010
related to the write-off of the remaining unamortized original
issuance discount and previously-deferred financing
costs.
This press release shall not constitute a notice of redemption
of the Series B Notes.
ABOUT CARDTRONICS
Headquartered in Houston, Texas, Cardtronics is the world's
largest non-bank owner of ATMs. Cardtronics operates over 33,700
ATMs across its portfolio, with ATMs in every major market in the
United States and in the U.S. territories of Puerto Rico and the
U.S. Virgin Islands, over 2,800 ATMs throughout the United Kingdom,
and over 2,800 ATMs throughout Mexico. Included in
Cardtronics' portfolio are approximately 2,200 multi-function
financial services kiosks that, in addition to traditional ATM
functions, perform other automated consumer financial
services. Major merchant clients include 7-Eleven®, Chevron®,
Costco®, CVS®/pharmacy, ExxonMobil®, Rite Aid®, Safeway®, Target®,
and Walgreens®. Complementing its ATM operations,
Cardtronics works with financial institutions of all sizes to
provide their customers with convenient cash access and deposit
capabilities through ATM branding, with over 11,700 Cardtronics
owned and operated ATMs now featuring bank
brands. Additionally, Cardtronics offers surcharge-free
programs, serving millions of cardholders from client financial
institutions through the use of stored-value cards at its
ATMs. More recently, Cardtronics started offering managed
services solutions to retailers and financial institutions that are
looking to outsource some or all of the operational aspects
associated with operating and maintaining their ATM
fleets. For more information, please visit
http://www.cardtronics.com.
The Cardtronics logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=991
CONTACT: Cardtronics, Inc.
Investors:
Chris Brewster, Chief Financial Officer
832-308-4128
cbrewster@cardtronics.com
Media:
Joel Antonini, Vice President - Marketing
832-308-4131
joel.antonini@cardtronics.com
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