Coinstar, Inc. Announces New Five-Year Senior Credit Facility

Coinstar, Inc. CSTR today announced that it has entered into a new credit facility agreement consisting of a senior secured $450 million revolving line of credit commitment that, under certain conditions, may be increased up to an additional $250 million in aggregate and a senior secured $175 million five-year amortizing term loan facility. The new agreement, which closed on July 15, 2011, amends and restates in its entirety the credit agreement originally entered into by Coinstar on November 20, 2007, and all previous amendments and restatements. The new agreement provides Coinstar with greater flexibility than the prior agreement in certain matters, including the incurrence of indebtedness, capital expenditures, restricted payments, and permitted acquisitions. The interest rates and revolving line commitment fees are lower than those under the prior credit facility. "We are very pleased to have negotiated financing to support the business that carries lower spreads and fees and fewer restrictions than our previous credit facility, giving us greater opportunities to create value for our shareholders," said J. Scott Di Valerio, chief financial officer of Coinstar, Inc. "The expanded credit facility will increase Coinstar's financial flexibility and will be integral to the company's long-term growth and success." A portion of the immediate term loan proceeds will be used to repay the amount outstanding under Coinstar's prior revolving line of credit, which was $150 million as of March 31, 2011. The remainder of the term loan proceeds will be available for other working capital needs. The revolving line of credit under the new agreement is currently undrawn. The term loan and revolving line of credit will mature on July 15, 2016.