SAN DIEGO--(BUSINESS WIRE)--Mar. 20, 2014--
Jack in the Box Inc. (NASDAQ: JACK) today announced completion of a new
five-year $800 million senior credit facility, comprised of a $600
million revolving credit facility and $200 million term loan.
Proceeds from the refinancing will be used to retire the previous $600
million senior credit facility that was due in November 2017. As of the
closing, approximately $243 million of the revolving credit facility
will be drawn or used for letters of credit and $200 million will be
outstanding on the term loan. Both will mature in March 2019.
The interest rate on the new senior credit facility is based on the
company’s leverage ratio and can range from LIBOR plus 1.25 percent to
2.00 percent with no LIBOR floor. The initial interest rate is LIBOR
plus 1.75 percent.
“As we near completion of the transformation of our business model for
the Jack in the Box brand and generate higher levels of cash flow from
our franchising activities, we’re comfortable with additional leverage,”
said Jerry Rebel, executive vice president and chief financial officer.
“The new credit agreement provides a flexible, longer-term capital
structure to support the company’s strategic plan, including additional
potential to return cash to shareholders. Refinancing enables us to take
advantage of lower rates while adding $200 million in additional
borrowing capacity.”
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 second quarter of fiscal 2014.
Wells Fargo Securities, LLC, and Merrill Lynch, Pierce, Fenner & Smith
Incorporated served as joint lead arrangers and joint lead bookrunners.
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 2,250
restaurants in 21 states. Additionally, through a wholly owned
subsidiary, the company operates and franchises Qdoba Mexican Grill®, a
leader in fast-casual dining, with more than 600 restaurants in 46
states, the District of Columbia and Canada. For more information on
Jack in the Box and Qdoba, including franchising opportunities, visit www.jackinthebox.com
or www.qdoba.com.
Source: Jack in the Box Inc.
Jack in the Box Inc.
Investor Contact:
Carol
DiRaimo, (858) 571-2407
or
Media Contact:
Brian
Luscomb, (858) 571-2291