Payment Methods

Cardtronics Announces $300M Debt Offering To Pay Off DirectCash Payments Buy

Cardtronics announced Thursday (March 30) that two of its indirect, wholly-owned subsidiaries, Cardtronics, Inc. and Cardtronics USA, Inc., intend to offer $300 million in aggregate principal amount of senior notes due 2025 for sale to eligible purchasers in a private offering.

In a press release, Cardtronics said it plans on using the net proceeds from the Notes Offering to repay approximately $294.5 million of outstanding debt under its revolving credit facility, from which amounts were borrowed to fund the acquisition of DirectCash Payments, Inc. by a subsidiary of Cardtronics on January 6, 2017.

In October, the operator of non-bank ATMs and DirectCash Payments announced a definitive agreement in which Cardtronics will acquire DirectCash Payments.

In a press release announcing the deal, the companies said the purchase price is CAD$19 per share and includes the assets of First Data Corporation’s Australian retail ATMs and managed services ATM portfolio, which was acquired by DCPayments on Sept. 30. The deal is valued at around $460 million and includes about $53 million of debt, which DCPayments incurred to finance its purchase of the First Data Australian ATM portfolio.

DCPayments is an ATM services provider with approximately 25,000 ATMs (inclusive of its First Data ATM portfolio acquisition), with primary operations in Australia, Canada and the United Kingdom. The combination will leverage Cardtronics’ existing infrastructure and relationships and drive substantial operating synergies. The combined companies would serve approximately 225,000 ATMs in North America, Europe and Asia-Pacific.

“Our proposed combination with DCPayments will enhance our global presence by adding Australia as an anchor market in Asia-Pacific, in addition to New Zealand. It also would grow Cardtronics’ existing ATM estates in Canada, the United Kingdom and Mexico,” said Steve Rathgaber, chief executive of Cardtronics, in a press release at the time.

“The combination will further position us to be the preferred global provider of ATM solutions to retailers and financial institutions. This acquisition would broaden our exposure to helping financial institutions reevaluate their physical presence as part of the bank transformation trends we are seeing worldwide.”


Latest Insights: 

Our data and analytics team has developed a number of creative methodologies and frameworks that measure and benchmark the innovation that’s reshaping the payments and commerce ecosystem. Check out the February 2019 PYMNTS Digital Fraud Tracker Report

Click to comment


To Top