SAN DIEGO--(BUSINESS WIRE)--Jul. 7, 2015--
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 $1.2 billion, which
consists of a $300 million term loan and $900 million revolving credit
facility.
Following the amendment on July 1, 2015, $300 million was outstanding on
the term loan and approximately $382 million was drawn or used for
letters of credit under the revolving credit facility.
There was no change to the maturity date or interest rates for either
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 2.00 percent. The interest rate as of
the date of the amendment was LIBOR plus 1.75 percent.
The amendment also raised the maximum leverage ratio from 3.0 times to
3.5 times, permits unlimited restricted payments if pro forma leverage
is less than 3.0 times (from 2.75 times previously), subject to pro
forma fixed charge covenant compliance, and eliminates the annual
limitation on capital expenditures.
“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. “With our growing level of EBITDA, the extra capacity
will enable us to comfortably maintain leverage within a 2 to 3 times
range.”
Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith
Incorporated, and Cooperative Centrale Raiffesisen-Boerenleenbank B.A.
“Rabobank International” New York Branch 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 2,200
restaurants in 21 states and Guam. 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 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
or www.qdoba.com.
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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