Blackhawk Network Holdings Inc.

Overview Key strengths Key risks Sizable footprint of partner distribution locations and a proprietary technology platform supporting a defensible market position. High leverage, about 5.5x-6.5x expected. Long-standing relationships with distribution partners. Heavy price competition against large and well-capitalized players. Increasing incentives business that lessens the impact of gift card seasonality. Highly seasonal cash flow and a reliance on consumer holiday spending for a significant share of revenue. Moderate customer concentration. Credit strengths include a leading share in gift card markets across many geographies and long and entrenched relationships with distributors and content providers, which support the company's scalable revenue base. Blackhawk enjoys multiyear contracts with many retail distribution partners, but competition is high as the company competes against large and

...Blackhawk Network Holdings Inc. has a leading share in the competitive prepaid card industry with contract renewal risk. Credit strengths include a leading share in gift card markets across many geographies and long and entrenched relationships with distributors and content providers, which support the company's scalable revenue base. Blackhawk enjoys multiyear contracts with many retail distribution partners, but competition is high as the company competes against large and well-capitalized players such as Visa, Western Union, and MoneyGram with respect to closed- and open-loop business. Blackhawk lost a large distribution...

Full Report