SAN DIEGO--(BUSINESS WIRE)--May 2, 2019--
Jack in the Box Inc. (NASDAQ: JACK) today announced completion of an
amendment to its existing senior credit facility. The maturity date for
both the revolving credit facility and the term loan was extended from
March 2020 to March 2021, resulting in no change to the classification
of the company’s long-term debt from prior quarters. The amendment does
not impact the company’s previously announced exploration of strategic
and financing alternatives.
Following the amendment on May 1, 2019, approximately $315.0 million was
outstanding on the term loan and approximately $748.3 million was drawn
or used for letters of credit under the $900 million revolving credit
facility.
The maximum leverage ratio covenant remains 4.5 times, and allows
unlimited cash dividends and share repurchases if pro forma leverage is
less than 4.0 times, subject also to pro forma fixed charge covenant
compliance. 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 immediately after giving
effect to the amendment was LIBOR plus 2.25 percent.
The company continues to explore a range of strategic and financing
alternatives to maximize shareholder value. Potential alternatives could
include, among other things, a sale of the company or executing on the
company’s previously announced plans to increase its leverage. The
company’s Board of Directors has not set a timetable for the conclusion
of this process, nor has it made any decision related to any strategic
or financing alternative at this time. In the absence of a strategic
transaction, the company remains committed to implementing a new capital
structure as soon as practicable.
Wells Fargo Securities, LLC served as lead arranger and lead bookrunner
for the amendment.
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; the company's ability to
maximize shareholder value through strategic or financial alternatives;
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/20190502005767/en/
Source: Jack in the Box Inc.
Investor Contact:
Carol DiRaimo, (858) 571-2407
Media Contact:
Brian Luscomb, (858) 571-2291