Cardtronics Prices Private Offering of $250 Million of Convertible Senior Notes Due 2020

Cardtronics Prices Private Offering of $250 Million of Convertible Senior
Notes Due 2020

HOUSTON, Nov. 20, 2013 (GLOBE NEWSWIRE) -- Cardtronics, Inc. (Nasdaq:CATM)
today announced the pricing of $250 million aggregate principal amount of
convertible senior notes due 2020 (the "Convertible Notes"). The Convertible
Notes were offered in a private offering to qualified institutional buyers
pursuant to Rule 144A under the Securities Act of 1933, as amended (the
"Securities Act"). The Company granted an option to the initial purchasers to
purchase up to an additional $37.5 million aggregate principal amount of
Convertible Notes, solely to cover over-allotments. The Convertible Notes will
pay interest semiannually at an annual rate of 1.00% and will be convertible
into cash, shares of the Company's common stock or a combination thereof, at
the Company's election, based on the applicable conversion rate at such time.
The Convertible Notes have an initial conversion rate of 19.1022 shares of the
Company's common stock per $1,000 principal amount of the Convertible Notes
(which is equal to an initial conversion price of approximately $52.35 per
share of the Company's common stock), representing an initial conversion
premium of approximately 25% above the closing price of $41.88 per share of
the Company's common stock on November 19, 2013. The Convertible Notes will
mature on December 1, 2020, unless earlier repurchased or converted in
accordance with their terms prior to such date. Prior to September 1, 2020,
the Convertible Notes will be convertible only upon the occurrence of certain
events and during certain periods, and thereafter, at any time prior to the
close of business on the second scheduled trading day immediately preceding
the maturity date. The Company expects to close the offering on or about
November 25, 2013, subject to the satisfaction of various customary closing
conditions.

In connection with the pricing of the Convertible Notes, the Company entered
into privately negotiated convertible note hedge transactions with the initial
purchasers or their respective affiliates (in this capacity, the "hedge
counterparties").The convertible note hedge transactions cover, subject to
customary anti-dilution adjustments, the number of shares of common stock
initially underlying the Convertible Notes sold in the offering.The Company
also entered into separate, privately negotiated warrant transactions with the
hedge counterparties relating to the same number of shares of the Company's
common stock, subject to customary anti-dilution adjustments, with an initial
strike price of approximately $73.29 per share, subject to certain
adjustments, which is approximately 75% higher than the closing price of the
Company's common stock on November 19, 2013. The warrants evidenced by the
warrant transactions will be settled on a net-share or net-cash basis, at the
Company's option. If the initial purchasers exercise their option to purchase
additional notes, the Company intends to enter into additional convertible
note hedge transactions and additional warrant transactions with the hedge
counterparties, which will initially cover the number of shares of the
Company's common stock that will initially underlie the additional notes sold
to the initial purchasers. The convertible note hedge transactions are
intended to reduce the potential dilution with respect to the Company's common
stock and/or offset any potential cash payments the Company is required to
make in excess of the principal amount of converted notes, as the case may be,
upon any conversion of the Convertible Notes.The Company expects that to the
extent the price per share of the Company's common stock exceeds the strike
price of the warrants, the warrant transactions could have a dilutive effect
with respect to the Company's common stock.

The Company estimates that it will receive net proceeds from the offering of
approximately $244.1 million (or approximately $280.9 million if the initial
purchasers exercise their option to purchase additional notes in full).

The Company intends to use:

  oapproximately $27.9 million of the net proceeds of the offering to fund
    the cost of entering into the convertible note hedge transactions (after
    such cost is partially offset by the proceeds that it receives from
    entering into the warrant transactions);
  oapproximately $156.5 million of the net proceeds of the offering to repay
    outstanding borrowings under the Company's revolving credit facility;
  oapproximately $28.0 million of the net proceeds of the offering to
    repurchase shares of the Company's common stock concurrently with the
    offering; and
  othe remainder of the net proceeds of the offering for general corporate
    purposes, which may include capital expenditures and working capital.

If the initial purchasers exercise their over-allotment option, the Company
intends to use a portion of the net proceeds to fund the cost of entering into
additional convertible note hedge transactions (which cost will be partially
offset by the proceeds that it expects to receive from entering into
additional warrant transactions). The Company intends to use the remainder of
such net proceeds for general corporate purposes, which may include working
capital and capital expenditures.

The net effect of the entirety of the above-described transactions is
anticipated to result in a financing structure that features an on-going cash
interest component at a fixed annual interest rate of 1.00% on the principal
amount of the offering of $250 million. Additionally, upon successful
completion of the above contemplated transactions, the Company expects to only
issue incremental shares or settle additional cash under the Convertible Notes
and warrant transactions (after giving effect to the shares and/or cash
received by the Company under the convertible note hedge transactions) to the
extent that the Company's share price increases by 75% above its closing price
of $41.88.

The Company has been advised that, in connection with establishing their
initial hedge positions with respect to the convertible note hedge
transactions and the warrant transactions, the hedge counterparties and/or
their affiliates (i) may enter into various cash-settled over-the-counter
derivative transactions with respect to the Company's common stock
concurrently with, or shortly following, the pricing of the Convertible Notes
and (ii) may unwind these cash-settled over-the-counter derivative
transactions and purchase shares of the Company's common stock in open market
transactions shortly following, and/or purchase shares of the Company's common
stock shortly following, the pricing of the Convertible Notes. These
activities could have the effect of increasing, or preventing a decline in,
the market price of the Company's common stock concurrently with, or shortly
following, the pricing of the Convertible Notes. The effect, if any, of these
activities, including the direction or magnitude, on the market price of the
Company's common stock will depend on a variety of factors, including market
conditions, and cannot be ascertained at this time. In addition, the Company
expects that the hedge counterparties and/or their affiliates will modify
their hedge positions with respect to the convertible note hedge transactions
and the warrant transactions from time to time after the pricing of the
Convertible Notes, and are likely to do so during any observation period, by
purchasing and/or selling shares of the Company's common stock and/or the
Convertible Notes in privately-negotiated transactions and/or open market
transactions or by entering into and/or unwinding various over-the-counter
derivative transactions with respect to the Company's common stock. The
effect, if any, of these activities on the market price of the Company's
common stock or the trading price of the Convertible Notes will depend on a
variety of factors, including market conditions, and cannot be ascertained at
this time. Any of these activities could, however, adversely affect the market
price of the Company's common stock and, consequently, the value of the
consideration received upon conversion of the Convertible Notes, the trading
price of the Convertible Notes and/or the ability of holders of Convertible
Notes to convert their Convertible Notes. In addition, any repurchases by the
Company of its common stock from purchasers of the notes could increase, or
avoid a decrease in, the market price of the Company's common stock after the
pricing of the notes

This press release is neither an offer to sell nor a solicitation of an offer
to buy the Convertible Notes or any shares of common stock issuable upon
conversion of the Convertible Notes, nor shall there be any sale of these
securities in any state or jurisdiction in which such an offer, solicitation
or sale would be unlawful prior to the registration or qualification under the
securities laws of any such state or jurisdiction.

The Convertible Notes and any common stock issuable upon conversion of the
Convertible Notes have not been registered under the Securities Act, or the
securities laws of any other jurisdiction, and may not be offered or sold in
the United States absent registration or an applicable exemption from
registration requirements. The offering is being made to qualified
institutional buyers pursuant to Rule 144A under the Securities Act.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this press release are forward-looking and are made
pursuant to the safe harbor provision of the Private Securities Litigation
Reform Act of 1995. These statements are based upon Cardtronics' current
belief as to the outcome and timing of future events. All statements, other
than statements of historical facts, including all statements regarding the
proposed offering of the Convertible Notes, that address activities that
Cardtronics plans, expects, believes, projects, estimates or anticipates will,
should or may occur in the future, including future capital expenditures and
future financial or operating results, are forward-looking statements.
Important factors that could cause actual results to differ materially from
those in the forward-looking statements herein include the timing and extent
of changes in operating risks, liquidity risks, legislative developments and
other risk factors and known trends and uncertainties as described in
Cardtronics' Annual Report on Form 10-K for the year ended December 31, 2012
and Quarterly Report on Form 10-Q for the quarter ended September 30, 2013 as
filed with the SEC. Should one or more of these risks or uncertainties occur,
or should underlying assumptions prove incorrect, Cardtronics' actual results
and plans could differ materially from those expressed in the forward-looking
statements. Cardtronics undertakes no obligation to update or revise
forward-looking statements to reflect changed assumptions, the occurrence of
unanticipated events or changes to future operating results over time.

          Cardtronics is a registered trademark of Cardtronics, Inc.

      All other trademarks are the property of their respective owners.

CONTACT: Media Relations
         Nick Pappathopoulos
         Director - Public Relations
         832-308-4396
         npappathopoulos@cardtronics.com

         Investor Relations
         Chris Brewster
         Chief Financial Officer832-308-4128
         cbrewster@cardtronics.com

Cardtronics
 
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