DineEquity talks $547 million credit facility at Libor plus 275 bps

By Sara Rosenberg

New York, Jan. 22 - DineEquity Inc. launched its $547 million senior secured credit facility on Tuesday with price talk of Libor plus 275 basis points, according to a market source.

The facility consists of a $75 million revolver due Oct. 19, 2015 and a $472 million term loan due Oct. 19, 2017, the source said.

The term loan has a 1% Libor floor and an original issue discount of 99 7/8, the source said.

Also included in the term loan is 101 soft call protection for one year.

Barclays Capital Inc. is the lead bank on the deal.

Proceeds will be used to refinance the existing term loan due October 2017 that is priced at Libor plus 300 bps with a 1.25% Libor floor, and the existing revolver that is priced at Libor plus 450 bps with a 1.5% Libor floor.

In addition, the company is seeking amendments to the excess cash flow sweep step-downs and the definition of excess cash flow sweep, and is asking to convert cumulative available amount for restricted payments to quarterly from annual, the source remarked.

Revolver lenders are being offered a 12.5 bps amendment fee.

Net senior secured leverage is 2.2 times and net total leverage is 5.1 times.

Commitments are due at noon ET on Friday and closing is expected in the week of Jan. 28.

DineEquity is a Glendale, Calif.-based owner of Applebee's Neighborhood Grill & Bar and IHOP Restaurants.

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