NEW YORK--(EON: Enhanced Online News)--Kroll Bond Rating Agency (KBRA) announces the assignment of preliminary ratings to two note classes of Coinstar Funding LLC, a whole business securitization.
Coinstar LLC (“Coinstar” or “the Company”) will contribute most of its revenue-generating assets to Coinstar Funding LLC as collateral for the offered notes. The collateral includes existing and future Coinstar branded kiosks, existing and future agreements with retail and product partners, and intellectual property. The proceeds from the offered notes will be used to refinance its existing credit facilities, pre-fund working capital, pay certain transaction expenses and return of capital to shareholders.
Coinstar operates a multi-national network of fully automated self-service coin counting machines. Consumers interact with Coinstar’s coin counting kiosks by feeding loose change into a kiosk, which dispenses a voucher, which consumers can redeem for cash at a retail location where the kiosks are located. The Company generates revenue through a transaction fee charged to consumers, or product partners, depending on if a voucher or gift card option is selected. As of December 2016, Coinstar’s network consisted of approximately 19,600 kiosk locations with annual system-wide sales of approximately $324.0 million. Approximately 86.1% of the kiosks are located in the United States and the remainder are located internationally.
KBRA analyzed the transaction using the General Rating Methodology for Asset-Backed Securities published on July 30, 2012. KBRA will review the final operative agreements and legal opinions for the transaction prior to closing.
For complete details on the analysis, please see KBRA’s Pre-Sale Report Coinstar Funding LLC – Series 2017-1 Senior Secured Notes which was published today at www.kbra.com.
The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.
Preliminary Ratings Assigned: Coinstar Funding, LLC – Series 2017-1 Senior Secured Notes
|Series 2017-1||Rating||Initial Principal Balance|
|Class A-1||BBB (sf)||$60,000,000|
|Class A-2||BBB (sf)||$840,000,000|
Representations & Warranties Disclosure
All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report entitled Disclosure is available at the following link: Coinstar Funding LLC Representations and Warranties Disclosure.
Related Publications: (available at www.kbra.com)
About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).