Dunkin' Brands launches $1.35 billion credit facility at Libor plus 425 bps

By Sara Rosenberg

New York, Nov. 4 - Dunkin' Brands Inc. launched its $1.35 billion senior credit facility on Thursday with price talk of Libor plus 425 basis points with a 1.5% Libor floor, according to a market source.

The facility consists of a $100 million five-year revolver and a $1.25 billion seven-year term loan B.

The term loan B is being offered to investors at an original issue discount of 99 and carries 101 soft call protection for one year.

Mid single-B corporate ratings are expected, the source said.

Barclays, JPMorgan, Bank of America and Goldman Sachs are the joint lead arrangers and joint bookrunners on the deal, with Barclays the left lead.

Proceeds from the credit facility, along with $625 million of senior notes, will be used to repay in full the company's outstanding securitization debt and to pay a cash dividend to stockholders.

Senior leverage is 4.2 times and total leverage is 6.5 times.

Canton, Mass.-based Dunkin' Brands is the parent company of Dunkin' Donuts, a coffee and baked goods restaurant chain, and Baskin-Robbins, an ice cream specialty store chain.

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