Cardtronics entered into an amended and restated $600 million revolving credit facility, with the potential to increase the borrowing capacity by an additional $100 million subject to approval by lenders.
According to a related 8-K filing, JPMorgan Chase Bank acted as administrative agent on the transaction, while J.P. Morgan Europe acted as alternative currency agent. Bank of America, Barclays Bank and Wells Fargo Bank served as co-syndication agents, while Capital One and Compass Bank served as co-documentation agents.
The facility includes an extended term through November 2023 and offers additional flexibility with an expanded borrowing capacity and generally improved financial terms and covenants, which allow for greater growth and capital allocation opportunities.
In conjunction with the execution of the new credit facility, Cardtronics also sent a call notice to the trustee of its outstanding $250 million 5.125% senior notes due 2022. To redeem and retire these notes, the company will pay a call premium of $6.4 million on December 19, 2018 along with accrued and unpaid interest through this date.
Cardtronics plans to fund the redemption of the notes with borrowings under the new credit facility. The majority of the expected borrowings necessary to retire the 2022 notes will be in British pounds, as the company currently generates a significant portion of its cash flow in this currency. As a result of these financing activities, the company anticipates that the net pre-tax cash interest savings will be approximately $8 million to $9 million in 2019, as compared to its cash interest expense outlook for 2018.
Cardtronics provides financial self-service, enabling cash transactions at approximately 230,000 ATMs across 10 countries in North America, Europe, Asia-Pacific and Africa.