SAN DIEGO--(BUSINESS WIRE)--Jun. 17, 2019--
Jack in the Box Inc. (NASDAQ: JACK) today announced that certain of its
subsidiaries intend to complete a refinancing of the company’s existing
senior credit facility, which is comprised of a term loan and revolving
credit facility, with a new securitized financing facility.
As of April 14, 2019, $315.0 million was outstanding under the term
loan, and $739.4 million was outstanding under the revolving credit
facility.
The company intends to replace the senior credit facility with a new
$1.45 billion securitized financing facility, expected to be comprised
of $1.3 billion of senior fixed-rate term notes (the “2019 Notes”) and
$150 million of variable funding notes (collectively, the “Notes”).
The net proceeds of the securitized financing facility are expected to
be used:
-
to repay all of the existing indebtedness under the senior credit
facility,
-
to pay the transaction costs and to fund the reserve accounts
associated with the securitized financing facility, and
-
for working capital purposes and for general corporate purposes, which
may include a return of capital to the company’s equity holders.
The consummation of the offering is subject to market and other
conditions and is anticipated to close in July 2019. However, there can
be no assurance that the company will be able to successfully complete
the refinancing transaction on the terms described or at all.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy the Notes or any other security. The
Notes to be offered have not been, and will not be, registered under the
Securities Act of 1933 and may not be offered or sold in the United
States absent registration or an applicable exemption from the
registration requirements of the Securities Act of 1933.
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. For more information on Jack in the
Box, 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. Forward-looking statements may
be identified by words such as “anticipate,” “believe,” “estimate,”
“expect,” “forecast,” “goals,” “guidance,” “intend,” “plan,” “project,”
“may,” “will,” “would” and similar expressions. These statements are
based on management’s current expectations, estimates, forecasts and
projections about our business and the industry in which we operate.
These estimates and assumptions involve known and unknown risks,
uncertainties, and other factors that are in some cases beyond our
control. Factors that may cause our actual results to differ materially
from any forward-looking statements include, but are not limited to: the
success of new products, marketing initiatives and restaurant remodels
and drive-thru enhancements; the impact of competition, unemployment,
trends in consumer spending patterns and commodity costs; the company's
ability to reduce G&A and operate efficiently; 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, risks relating to expansion into new
markets and successful franchisee development; litigation risks; risks
associated with disagreements with franchisees; supply chain disruption;
food-safety incidents or negative publicity impacting the reputation of
the company's brand; the company’s ability to obtain additional
financing and increase its debt leverage; 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190617005109/en/
Source: Jack in the Box Inc.
Investor Contact:
Carol DiRaimo, (858) 571-2407
Rachel
Webb, (858) 571-2683
Media Contact:
Brian Luscomb, (858) 571-2291