Jack in the Box amended its existing senior credit facility arranged by Wells Fargo Securities. Concurrently, Jack in the Box completed the sale of Qdoba to Apollo Global Management in a $305 million cash deal.

The amendment extended the maturity date for both the revolving credit facility and the term loan to March 2020. In connection with the sale of Qdoba, the company will also make a prepayment of $260 million to retire outstanding debt under its term loan, as required by the terms of its credit facility. Wells Fargo Securities, in addition to serving as lead arranger, acted as lead bookrunner for the amendment.

The sale of Qdoba to Apollo ended the burger chain’s 15-year ownership of the fast-casual Mexican brand. Affiliates of Apollo inherit more than 700 owned and franchised Qdoba restaurants in the U.S. and Canada. When Jack in the Box purchased Qdoba in 2003, the chain had 85 locations in 16 states.

“We’re pleased that our lenders have the confidence in our business model to increase our borrowing capacity without waiting for completion of our refranchising strategy,” said Lenny Comma, chairman and CEO of Jack in the Box. “We remain comfortable with ultimately increasing our leverage to 5.0 times EBITDA. The extension of our credit facility is an interim step that provides an immediate increase in our borrowing capacity to 4.5 times EBITDA while we work with our advisors to evaluate longer-term financing alternatives.”

San Diego-based Jack in the Box is one of the nation’s largest hamburger chains, with more than 2,200 restaurants in 21 states and Guam.