The Houston automated teller machine operator Cardtronics Inc. plans to borrow $125 million to pay for its deal to buy 7-Eleven Inc.'s network.
Cardtronics said last week that it would offer a series of senior subordinated notes due in 2013 with an interest rate of 9.25%. It also said the $135 million deal, announced last month and originally expected to close by the end of June, would close early this quarter.
Cardtronics said it would use available cash and a revolving credit facility to cover the remaining $10 million of the purchase.
With more than 25,750 machines, Cardtronics is the top nonbank ATM operator. The 7-Eleven network has 3,500 ATMs and 2,000 Vcom kiosks, which offer services such as cashing checks and paying bills.
Cardtronics also would receive a 10-year exclusive agreement to operate the machines in 7-Eleven stores.
The ATM operator has said that it is interested in kiosks, like the Vcom, and has tested some machines that can offer more advanced services than the basic ones typically found in merchant sites.
