Wingstop closed a new $250 million senior secured credit facility with Wells Fargo Bank as administrative agent as part of the company’s recapitalization
The new five-year credit facility bears an initial interest rate of LIBOR + 275 bps and consists of a $100 million senior secured term loan with a 5% mandatory amortization and a $150 million senior secured revolving credit facility. The interest rate is subject to a grid with step downs of 25 basis points as leverage declines.
Wells Fargo Securities, Citizens Bank, and Fifth Third Bank acted as the joint lead arrangers and book runners.
A special cash dividend will be paid on February 14, 2018 to stockholders of record as of February 9, 2018. Following payment of the special dividend, Wingstop will have drawn approximately $230 million on the new credit facility, including the full amount of the term loan facility and $130 million of the revolving facility, to refinance $133.8 million of outstanding indebtedness under Wingstop’s June 2016 credit facility and pay the special dividend.
Dallas-based Wingstop operates and franchises more than 1,100 restaurants across the U.S., Mexico, Singapore, the Philippines, Indonesia, the United Arab Emirates, Malaysia, Saudi Arabia and Colombia.
