Cardtronics said it is redeeming $100 million of 9.25% senior subordinated notes as part of a refinancing that will reduce debt and interest expenses.
The redemption of the junk bonds will be financed with $30 million of cash on hand and $75 million available under a new $175 million revolving credit facility with JP Morgan Chase and Bank of America.
"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."
Cardtronics, which operates more than 25,000 ATMs across the U.S., is a key electronic funds switch for credit unions with hook-ups to the CO-OP Financial, Credit Union 24 and Financial Service Centers Cooperative networks. It is the parent of the ATM surcharge-free Allpoint network.