Barclays Agents Dunkin’ Brands Refi
Dunkin’ Brands Group, the parent company of Dunkin’ Donuts and Baskin-Robbins, announced it completed the refinancing of its senior secured credit facility, including its senior secured revolving credit facility. According to an 8-K dated February 7, 2014, Barclays Bank PLC acted as administrative agent, swing line lender, L/C issuer and collateral agent.
The total debt of the company remains unchanged. The company refinanced its senior secured credit facilities with new credit facilities consisting of a $1.379 billion term loan due February 2021, a $450 million term loan due September 2017 and a $100 million revolving credit facility due February 2019.
The new interest rate on the term loan due February 2021 is LIBOR plus 2.50% with a LIBOR floor of 0.75%, while the interest rate on the term loan due September 2017 is LIBOR plus 2.50% with no LIBOR floor. The prior rate on the company’s term loan facility had been LIBOR plus 2.75% with a LIBOR floor of 1.00%. The new interest rate for the revolving credit facility is LIBOR plus 2.25% with no LIBOR floor (previously LIBOR plus 2.50%).
All other material provisions, including covenants under the existing credit agreement, remain unchanged.
The company expects interest expense approximately $70 million in 2014.
“The strong credit market and high demand for Dunkin’ Brands’ term loan and revolving loan have enabled us to lower our weighted average cost of debt. As a result, we expect interest expense savings of $10 million in 2014,” said Paul Carbone, Dunkin’ Brands CFO. “Our previously provided guidance of $1.79-1.83 for adjusted earnings per share is inclusive of the savings from the refinancing.”
Dunkin’ Brands Group Inc. is one of the world’s leading franchisors of quick service restaurants (QSR) serving hot and cold coffee and baked goods, as well as hard-serve ice cream, with more than 18,000 point of distribution in nearly 60 countries worldwide.