Apollo Sells Coinstar to Alaskan Buyer, Repays Bonds

Apollo Global Management Inc. recently announced the sale of Coinstar LLC to the Arctic Slope Regional Corporation (ASRC). This transaction marks a significant shift for Coinstar, a well-known coin-exchange and cryptocurrency enterprise.

Apollo Sells Coinstar to ASRC

The sale, which remains undisclosed until now, is set to involve ASRC repaying over $750 million in principal and accrued interest. This repayment is expected to take place in early January, ensuring bondholders are compensated. The transaction has been a point of considerable interest, especially among creditors.

Background on Coinstar and ASRC

• Coinstar operates over 24,000 kiosks that allow customers to exchange loose change for cash.
• The company was acquired by Apollo Global Management in 2016.
• ASRC was established in 1972 as part of the Alaska Native Claims Settlement Act.
• The corporation is tasked with overseeing investments for indigenous Alaskan communities.

ASRC serves a vital role in the economy, owning businesses across multiple sectors including construction and petroleum refining. It represents approximately 14,000 Iñupiaq shareholders from various villages like Wainwright and Utqiaġvik. Since its founding, ASRC has distributed over $1 billion in dividends to its shareholders, showcasing its commitment to community engagement.

Impact on Bondholders and Future Outlook

The anticipated repayment is positive for Coinstar’s creditors, especially those who had earlier agreed to restructure Coinstar’s debt in 2023. This restructuring aimed to help the company manage a cash crunch, addressing concerns about potential long-term business challenges.

In recent years, Coinstar has also expanded its offerings by introducing services that allow customers to purchase cryptocurrency through its kiosks and app. Despite facing business slowdowns, these developments signal a strategic shift towards modern financial solutions.

Conclusion

The sale to ASRC not only secures the future for Coinstar but also aligns with ASRC’s commitment to supporting its shareholders. As the transaction unfolds, both organizations prepare for a new chapter in their respective histories.