Jack in the Box amended its existing senior credit facility, extending the maturity date for both the revolving credit facility and the term loan from March 2020 to March 2021.
The amendment resulted in no change to the classification of the company’s long-term debt from prior quarters. The amendment does not impact the company’s previously announced exploration of strategic and financing alternatives.
Following the amendment on May 1, 2019, approximately $315 million was outstanding on the term loan and approximately $748.3 million was drawn or used for letters of credit under the $900 million revolving credit facility.
The maximum leverage ratio covenant remains 4.5 times, and allows unlimited cash dividends and share repurchases if pro forma leverage is less than 4.0 times, subject also to pro forma fixed charge covenant compliance. The interest rate on the senior credit facility is based on the company’s leverage ratio and can range from LIBOR plus 1.25% to LIBOR plus 2.25 percent. The interest rate immediately after giving effect to the amendment was LIBOR plus 2.25%.
Wells Fargo Securities served as lead arranger and lead bookrunner for the amendment.
