Outerwall Announces Leadership Transition at Redbox, Actions to Achieve $22M in Annual Cost Savings

Outerwall

, today announced progress on its previously announced operating review and capital structure initiatives. This progress includes: The discontinuation of three new venture concepts; A leadership transition at Redbox; Cost reduction initiatives that are expected to result in $22 million of annual cost savings beginning in the first quarter of 2014; and A $350 million expansion of Outerwall's existing senior secured credit facility, which will enable the company to meet its previously announced target leverage ratio in the first quarter of 2014. (Logo: http://photos.prnewswire.com/prnh/20130701/AQ41388LOGO) "These actions are consistent with the plans we outlined earlier this year and ensure that Outerwall's operations drive enhanced value creation for both our shareholders and retail partners," said J. Scott Di Valerio, chief executive officer of Outerwall. Discontinuation of Certain New Ventures Outerwall has concluded the previously announced review of its New Ventures business segment and will discontinue three new venture concepts, Rubi™, Crisp Market™ and Star Studio. The wind-down process is expected to