Green Dot 2015 Annual Report Download - page 50

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for our stock repurchase program. Our $419.1 million of net cash provided by financing activities in the year ended
December 31, 2014 was primarily the result of $345.8 million of deposits, proceeds of $150.0 million associated with
our term loan and and proceeds and excess tax benefits of $13.9 million associated with equity award activities. These
were offset by decreases of $79.4 million in obligations to customers. Our $57.9 million of net cash provided by financing
activities for the year ended December 31, 2013 was the result of $21.1 million of deposits and $19.6 million of
obligations to customers associated with our GPR card program, and proceeds and excess tax benefits of $18.7 million
associated with equity award activities.
Commitments
We anticipate that we will continue to purchase property and equipment as necessary in the normal course of our
business. The amount and timing of these purchases and the related cash outflows in future periods is difficult to
predict and is dependent on a number of factors including the hiring of employees, the rate of change of computer
hardware and software used in our business and our business outlook. During 2016, we intend to continue to invest
in new products and programs, new features for our existing products and IT infrastructure to scale and operate
effectively to meet our strategic objectives.
We have used cash to acquire businesses and technologies and we anticipate that we may continue to do so in
the future. The nature of these transactions makes it difficult to predict the amount and timing of such cash requirements.
We may also be required to raise additional financing to complete future acquisitions.
Additionally, we may need to make ongoing cash contributions to our subsidiary bank, Green Dot Bank, to maintain
its capital, leverage and other financial commitments at levels we have agreed to with our regulators. For example, in
connection with the transition of our card issuing program with GE Capital Retail Bank to Green Dot Bank in February
2014, we contributed approximately $50 million in capital to Green Dot Bank and we settled our liability associated
with overdrawn cardholder account balances, which is included in our consolidated balance sheet as "amounts due
to card issuing banks for overdrawn accounts." Additionally, our investment securities may act as short-term collateral
to Green Dot Bank to satisfy any requirements associated with its legal lending limit.
Senior Credit Facility
In October 2014, we entered into a $225 million credit agreement with Bank of America, N.A., as administrative
agent, Wells Fargo Bank, National Association, and other lenders party thereto. The agreement provides for (i) a $75
million five-year revolving facility (the “Revolving Facility”) and (ii) a five-year $150 million term loan facility (the “Term
Facility” and, together with the Revolving Facility, the “Senior Credit Facility”). At our election, loans made under the
credit agreement bear interest at (1) a LIBOR rate or (2) a base rate as defined in the agreement, plus an applicable
margin (3.17% as of December 31, 2015). The balance outstanding on the Term Facility was $121.7 million at
December 31, 2015, net of deferred financing fees. Quarterly principal payments of $5.6 million are payable on the
loans under the Term Facility. The loans made under the Term Facility mature and all amounts then outstanding
thereunder are payable on October 23, 2019. There were no borrowings on the Revolving Facility at December 31,
2015. We are also subject to certain financial covenants, which include maintaining a minimum fixed charge coverage
ratio and a maximum consolidated leverage ratio at the end of each fiscal quarter, as defined in the agreement, as
amended. At December 31, 2015, we were in compliance with all such covenants.
Share Repurchase Program
In June 2015, we announced that our Board of Directors had authorized a stock repurchase program. As of
December 31, 2015, our Board of Directors had authorized the repurchase of up to $150 million of common stock
under this program. The stock repurchase program will continue until otherwise suspended, terminated or modified at
any time for any reason by our Board of Directors.
In September 2015, we entered into an accelerated share repurchase agreement ("ASR") with a financial institution
to repurchase shares of our common stock as part of our repurchase program. Under the ASR agreement, in exchange
for an up-front payment of $40 million, we received an initial delivery of approximately 1.8 million shares on September
4, 2015 based on the then current market price of our stock. The ASR settled in January 2016 and the total number
of shares repurchased was approximately 2.3 million at an average price of $17.08 per share.
In December 2015, we entered into a $10 million agreement to repurchase shares under Rule10b5-1 of the
Exchange Act. As of December 31, 2015, we repurchased approximately $1.7 million, or 0.1 million shares, at an
average share price of $16.49 under this plan. The remaining repurchases under this agreement were completed in
January 2016. In total, we received approximately 0.6 million shares at an average price of $16.15 under this agreement.