The Wendy’s Company announced that its indirect wholly owned subsidiary, Wendy’s International entered into an agreement to refinance its existing credit facility. Subject to certain closing conditions, the company expects the transaction to close on May 16, 2013.

Bank of America Merrill Lynch and Wells Fargo are acting as joint lead arrangers in the transaction.

The company expects this refinancing to generate more than $19 million in ongoing annual interest expense savings, in addition to the approximately $30 million in ongoing annual net interest expense savings from the company’s 2012 refinancing. Based on current market conditions, the refinancing represents a year-over-year reduction in interest expense of approximately 175 basis points.

The refinancing of $350 million of the approximately $1,119 million senior secured term loan B into a new senior secured term loan A, which will have an interest rate margin of 2.25 percent for eurodollar rate loans (and no floor) and will mature in May 2018, one year earlier than the term loan B.

The maturity of the $200 million revolving credit facility will be extended by one year (from May 2017 to May 2018).

“This transaction is an important part of our financial management component of our ‘Recipe to Win,'” said chief financial officer Steve Hare. “Coupled with our 2012 refinancing, we will reduce our annual net interest expense by approximately $50 million compared to two years ago. This will benefit our cash flow and earnings per share in the coming years, and provides us with additional flexibility with respect to organic growth opportunities and shareholder-enhancing initiatives.”