Del Taco Restaurants enters into new five-year $250 million revolver

By Wendy Van Sickle

Columbus, Ohio, Aug. 5 – Del Taco Restaurants, Inc. closed on a new five-year $250 million senior revolving credit facility, the company announced in a Wednesday press release.

The revolver initially bears interest at Libor plus 200 basis points.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC acted as the joint lead arrangers of the facility.

Del Taco used $164 million of the facility to refinance its existing senior secured debt.

With the refinancing, the company said its borrowing costs dropped 305 bps under current market conditions, equivalent to annual interest savings of about $5.4 million a year.

“This refinancing materially reduces our annual interest expense, enhancing our net income and free cash flow, and allowing us even greater flexibility to execute our new store development strategy,” Steven L. Brake, chief financial officer of Del Taco, said in the release.

Del Taco is a Lake Forest, Calif.-based Mexican-American quick service restaurant chain.

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