Certain subsidiaries of Jack in the Box intend to complete a refinancing of the company’s existing senior credit facility, which is comprised of a term loan and revolving credit facility, with a new securitized financing facility. Wells Fargo Securities arranged the facility.
As of April 14, 2019, $315.0 million was outstanding under the term loan, and $739.4 million was outstanding under the revolving credit facility.
The company intends to replace the senior credit facility with a new $1.45 billion securitized financing facility, expected to be comprised of $1.3 billion of senior fixed-rate term notes (the “2019 Notes”) and $150 million of variable funding notes (collectively, the “Notes”).
The net proceeds of the securitized financing facility are expected to be used:
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- to repay all of the existing indebtedness under the senior credit facility,
- to pay the transaction costs and to fund the reserve accounts associated with the securitized financing facility
- for working capital purposes and for general corporate purposes, which may include a return of capital to the company’s equity holders
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The consummation of the offering is subject to market and other conditions and is anticipated to close in July 2019. However, there can be no assurance that the company will be able to successfully complete the refinancing transaction on the terms described or at all.
Follow the story on ABF Journal:
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