Papa John’s International successfully completed its senior notes offering and the refinancing of its revolving credit facility, providing the company with enhanced financial flexibility and additional liquidity. The transaction marks another significant step toward strengthening and aligning Papa John’s balance sheet and capital allocation priorities with its improving growth outlook and cash-generation potential.
The company closed its previously announced offering of $400 million aggregate principal amount of 3.875% senior notes due 2029 in a private transaction exempt from the registration requirements of the Securities Act of 1933, as amended. The notes are guaranteed by each of Papa John’s domestic restricted subsidiaries that are guarantors or borrowers under its amended credit agreement.
Concurrently with the closing of the offering of the notes, Papa John’s amended and restated its existing credit agreement with JPMorgan Chase as administrative agent and the other lenders party thereto. Pursuant to the amended credit agreement, Papa John’s revolving credit facility has been increased to an aggregate principal amount of $600 million and the maturity has been extended for an additional five-year term.
The net proceeds from the offering of the notes, together with borrowings under the amended revolving credit facility, were used to repay outstanding borrowings under the company’s existing revolving credit facility and term loan facility and to pay all related fees and expenses.
“As Papa John’s has transformed itself into an innovation-driven, growth brand, we have also made progress aligning our balance sheet and capital allocation priorities to support and accelerate our positive outlook,” Ann Gugino, CFO of Papa John’s, said. “We are committed to a balanced approach, having significantly increased growth investments and capital returns to shareholders over the past year, as well as simplifying our balance sheet. This refinancing locks in attractive interest rates for the long term, while maintaining an efficient cost of capital.”
