) has priced $250 million senior notes due 2020. The notes will
carry an interest of 5.125%.
Cardtronics intends to use the net proceeds from the offering to
buy back its 8.250% $1.79 billion senior subordinate notes due 2018
and for general corporate purposes.
At the end of first-quarter 2014, the company had a total debt of
$485 million. improving 1.23% over 2013 end level. The debt to
capital ratio also showed marginal improvement to 0.65%. Earlier,
in Nov 2013 issued $250 million convertible senior notes due on
2020. However, with the new issuance, the debt level will increase
along with debt capital ratio showing deterioration in the leverage
Cardtronics' interest expense increased 6.5% year over year in the
last reported quarter. Nonetheless, it is a prudent approach by the
company to issue notes at lower coupon rate taking the advantage of
low interest rate environment and buyback debts of higher coupon,
thereby lowering its interest burden. The company's solid
operational performance will support it to service debt
uninterruptedly, thereby retaining credit worthiness.
Cardtronics carries Zacks Rank #3 (Hold). Better-ranked business
service providers that are worth considering include
ExamWorks Group, Inc.
Iron Mountain Inc.
). While ExamWorks sports a Zacks Rank #1 (Strong Buy), Iron
Mountain and InnerWorkings carry a Zacks Rank #2 (Buy).
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