On February 15, Popeyes Louisiana Kitchen amended its credit agreement with Wells Fargo as administrative agent. On February 21, Burger King purchased the company for $1.8 billion in a transaction scheduled to close in April.
“We are pleased to report another year of strong performance at Popeye’s,” said Cheryl Bachelder, Popeyes CEO, in the company’s Q4/16 report. “Driving the top line through a careful balance of innovative offerings and core menu value has created momentum in the fourth quarter, despite challenging market conditions. In 2016, we delivered global same-store sales growth of 1.7%, our 8th consecutive year of positive same-store sales growth, and 216 new restaurant openings around the world.”
The credit amendment consists of a $150 million dollar revolving loan expansion under the 2016 credit facility. This expanded capacity will give the company access to a total of $400 million dollars of revolving debt capacity. The company currently has drawn $155.5 million of this total debt capacity. Availability for short-term borrowings and letters of credit under the revolving credit facility after giving effect to this transaction was $244.4 million. The facility is scheduled to mature on January 22, 2021. There are no required principal payments due prior to the maturity date.
According to a related 8-K filing, Wells Fargo served as administrative agent, swingline lender and issuing lender. Bank of America was syndication agent. Capital One and Regions were co-documentation agents. Wells Fargo Securities and Merrill Lynch were joint lead arrangers and joint bookrunners.