Cardtronics plans $250 million seven-year convertibles to yield 0.75%-1.25%, up 22.5%-27.5%

By Rebecca Melvin

New York, Nov. 18 - Cardtronics Inc. launched an offering of $250 million seven-year convertible senior notes after the market close on Monday that was expected to price after the market close on Tuesday.

The securities were talked at a coupon of 0.75% to 1.25% and an initial conversion premium of 22.5% to 27.5%, according to a syndicate source.

The Rule 144A offering has a $37.5 million greenshoe.

BofA Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities are joint bookrunners of the deal.

The notes are non-callable for life.

In connection with the offering, the company plans to enter into convertible note hedge and warrant transactions with initial purchasers of the notes.

A portion of the proceeds will be used to pay the cost of the convertible note hedge transactions. About $156.5 million of proceeds will be used to repay outstanding borrowings under the company's revolving credit facility, and up to $30 million will be used to repurchase shares of common stock. Remaining proceeds will be earmarked for general corporate purposes, including capital expenditures and working capital.

Houston-based Cardtronics is a provider of ATM services. Cardpoint trades as ATM services provider Cashzone in the United Kingdom and as Cardpoint in Germany.

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