Jack in the Box completed an amendment to its existing senior credit facility, increasing it to $1.6 billion. According to a related 8-K filing, Wells Fargo was administrative agent for the transaction.

Wells Fargo Securities, Merrill Lynch, Pierce, Fenner & Smith and Rabobank served as joint lead arrangers and joint lead bookrunners.

The facility consists of a $700 million term loan and $900 million revolving credit facility.

Following the amendment on September 16, 2016, $700 million was outstanding on the term loan and approximately $307.5 million was drawn or used for letters of credit under the revolving credit facility.

The maturity date for both the revolving credit facility and the term loan will remain in March 2019. The interest rate on the senior credit facility is based on the company’s leverage ratio and can range from LIBOR+1.25% to LIBOR+2.25%. The interest rate as of the date of the amendment was LIBOR+2.00%.

The amendment also raised the maximum leverage ratio covenant from 3.5 times to 4.0 times, and allows unlimited cash dividends and share repurchases if pro forma leverage is less than 3.5 times (from 3.0 times previously), subject also to pro forma fixed charge covenant compliance.

“The amended credit agreement provides us with more than $400 million of additional borrowing capacity to support the company’s strategic priorities,” said Jerry Rebel, executive vice president and chief financial officer. “We are pleased that our lenders have the confidence in our business model to increase our borrowing capacity to four times EBITDA without waiting for our refranchising strategy to be completed.”