(Bloomberg) -- A pair of bondholders has agreed to advance $90 million in additional debt to Coinstar LLC, giving the struggling operator of coin-counting kiosks more breathing room to refinance maturing debt and cover expenses, according to people familiar with the matter.

The company, which is owned by private equity firm Apollo Global Management, has been in talks with creditors over how to restructure approximately $1 billion in asset-backed bonds that reached a key repayment date in late April. The bonds were whole business securitization deals, in which the company effectively pledges all its assets in exchange for cheap financing. 

Coinstar was facing a cash crunch on the debt as refinancing costs skyrocketed after interest rates started rising sharply last year. The company’s challenges deepened in 2020, when consumers — flush with government stimulus funds — saw less need to trade in loose change for cash at Coinstar kiosks, according to a December 2022 report by Kroll Bond Rating Agency. Overall transaction volumes at Coinstar’s kiosks didn’t return to levels seen in late 2019 until the end of 2021, Kroll said. 

Read more: Apollo-Backed Coinstar, Creditors Tap Advisers as Payments Near

In May, lenders decided to help. Bondholders agreed to give the firm an advance to pay down part of the debt, cover expenses and put cash on Coinstar’s balance sheet among other uses, said the people. The financing was partly done through a supplemental management fee that will provide regular proceeds over the next couple years. In exchange, the company agreed to grant those bondholders high-priority rights to payments, they added. 

An Apollo representative declined to comment. A Coinstar spokesperson didn’t respond to requests for comment.

The whole business bonds — a $900 million bond sold in May 2017, and a $100 million bond sold in June 2018, both backed by the same pool of assets — repackage all of Coinstair’s revenue-generating assets as collateral, according to deal details that became public at the time of issuance. That includes existing and future Coinstar-branded domestic kiosks, domestic contracts with retailers, royalties from international license agreements, and domestic and international intellectual property. KBRA downgraded the securities to BBB- from BBB in 2022.

Coinstar operates more than 23,000 coin collection kiosks in the US and other countries, including in grocery stores, drug stores and banks, according to a KBRA report. It recently started allowing customers to purchase cryptocurrency.

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