SAN DIEGO--(BUSINESS WIRE)--Sep. 22, 2016--
Jack in the Box Inc. (NASDAQ: JACK) today announced completion of an
amendment to its existing senior credit facility. Under the terms of the
amendment, the credit facility was increased to $1.6 billion, which
consists of a $700 million term loan and $900 million revolving credit
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 plus 1.25 percent to LIBOR plus 2.25 percent. The interest rate as
of the date of the amendment was LIBOR plus 2.00 percent.
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 4 times
EBITDA without waiting for our refranchising strategy to be completed.”
In addition, the company announced that its Board of Directors has
authorized an additional $300 million stock buyback program expiring in
November 2018. As of the end of the third quarter of fiscal 2016, the
company had $150.0 million remaining under stock buyback programs
previously authorized by its Board of Directors in February and May 2016
that expire in November 2017.
Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith
Incorporated, and Coöperatieve Rabobank U.A., New York Branch (f/k/a
Cooperative Centrale Raiffesisen-Boerenleenbank B.A. “Rabobank
International” New York Branch) served as joint lead arrangers and joint
About Jack in the Box Inc.
Jack in the Box Inc. (NASDAQ: JACK), based in San Diego, is a restaurant
company that operates and franchises Jack in the Box® restaurants, one
of the nation’s largest hamburger chains, with more than 2,200
restaurants in 21 states and Guam. Additionally, through a wholly owned
subsidiary, the company operates and franchises Qdoba Mexican Eats®, a
leader in fast-casual dining, with more than 600 restaurants in 47
states, the District of Columbia and Canada. For more information on
Jack in the Box and Qdoba, including franchising opportunities, visit www.jackinthebox.com
Safe harbor statement
This press release contains forward-looking statements within the
meaning of the federal securities laws. Such statements are subject to
substantial risks and uncertainties. A variety of factors could cause
the company’s actual results to differ materially from those expressed
in the forward-looking statements, including the following: the success
of new products and marketing initiatives; the impact of competition,
unemployment, trends in consumer spending patterns and commodity costs;
the company's ability to reduce G&A the company's ability to execute its
refranchising strategy; the company’s ability to achieve and manage its
planned growth, which is affected by the availability of a sufficient
number of suitable new restaurant sites, the performance of new
restaurants, and risks relating to expansion into new markets;
litigation risks; food safety incidents or negative publicity impacting
the reputations of the company's brands; and stock market volatility.
These and other factors are discussed in the company’s annual report on
Form 10-K and its periodic reports on Form 10-Q filed with the
Securities and Exchange Commission which are available online at http://investors.jackinthebox.com
or in hard copy upon request. The company undertakes no obligation to
update or revise any forward-looking statement, whether as the result of
new information or otherwise.
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Source: Jack in the Box Inc.
Jack in the Box Inc.