Daily News: March 29, 2012

NPC Closes Term Loan Refinancing With Barclays, Goldman Sachs


NPC International, Inc. announced that it has refinanced its outstanding $375 million term loan, availing itself of favorable market conditions and leveraging the company’s strong close to fiscal 2011.

The refinancing resulted in a 125 basis point reduction in the spread over LIBOR on the company’s term loan borrowings and lowered the term loan LIBOR floor by 25 basis points. At prevailing LIBOR rates this action serves to reduce annual interest expense by approximately $5.6 million. The company paid a soft call premium, in accordance with the terms of its credit agreement, plus transaction related expenses totaling approximately $4.9 million to effectuate the refinancing. No other changes were made to the company’s senior credit facility in the refinancing.

Jim Schwartz, chairman and CEO of NPC International, Inc., said, “We are pleased with the results of the term loan refinancing effort as the reduction in interest cost will meaningfully increase our free cash flow, thereby further improving the company’s already strong deleveraging profile.”

Barclays and Goldman Sachs Bank USA served as joint lead arrangers and joint bookrunners for the transaction.

NPC International, Inc. is a Pizza Hut franchisee and currently operates 1,187 Pizza Hut restaurants and delivery units in 28 states.

Previously on abfjournal.com:

NPC Engages Barclays, Goldman Sachs for Term Loan Refinancing, Thursday, March 15, 2012