Denny's $275 million credit facility to launch Aug. 16 week

By Sara Rosenberg

New York, Aug. 13 - Denny's Corp. will hold a bank meeting during the Aug. 16 week for its proposed $275 million senior secured credit facility, according to a market source.

Banc of America Securities LLC and UBS Securities LLC are joint lead arrangers on the deal, with Banc of America listed on the left.

The facility consists of a $200 million five-year term loan and a $75 million four-year revolving credit facility. Price talk on the tranches is unavailable at this time, the source said.

Proceeds will be used to refinance the existing credit facility, refinance a portion of existing senior notes and will be available for working capital, capital expenditures and other general corporate purposes.

The company is also considering up to $320 million of additional financing transactions in order to refinance some or all of its remaining senior notes, according to a company news release.

Closing on the loan is expected to occur in September.

"We are pleased with the progress we have made in our recapitalization process, which began with our equity placement last month," chief financial officer Andrew F. Green said in the release. "This new credit facility is a significant next step in our efforts to further strengthen our capital structure and lower our interest expense."

Denny's is a Spartanburg, S.C., full-service family restaurant chain.

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