Jack in the Box completed a new five-year $600 million senior credit facility, comprised of a $400 million revolving credit facility and $200 million term loan.
The refinancing will be used to retire the previous $600 million senior credit facility that was due in June 2015. Approximately $220 million of the new revolving credit facility will be drawn and $200 million will be outstanding on the term loan. Both will mature in November 2017, with the term loan having required principal payments of $20 million in each of the first four years after closing, and the balance due in the fifth year.
The interest rate on the new senior credit facility is based on the company’s leverage ratio and can range from LIBOR plus 1.75% to 2.25% with no floor. The initial interest rate is LIBOR plus 2%.
Due to replacing existing credit facilities prior to expiration, the company will be required to expense approximately $0.8 million of deferred financing fees in the first quarter of fiscal 2013.
Wells Fargo Securities and Merrill Lynch, Pierce, Fenner & Smith served as joint lead arrangers and joint book managers.
San Diego-based Jack in the Box is a restaurant company that operates and franchises Jack in the Box