Restaurant Brands to price $1 billion secured notes on Thursday

By Paul A. Harris

Portland, Ore., Nov. 14 – Restaurant Brands International, Inc. plans to price a $1 billion offering of second-lien senior secured notes due January 2028 (current ratings B2/B+) in a Thursday drive-by trailing a mid-morning conference call with investors, according to market sources.

Initial guidance has the deal coming to yield in the mid 4% area, a bond trader said.

Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, RBC Capital Markets LLC, Barclays and BofA Securities Inc. are the joint bookrunners.

Rabo Securities, HSBC Securities, MUFG, BMO Capital Markets, Goldman Sachs & Co. LLC, Fifth Third Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Scotia Capital, SunTrust Robinson Humphrey Inc. and Capital One Securities Inc. are the co-managers.

The Rule 144A for life and Regulation S notes become callable after three years at par plus 50% of the coupon.

The issuing entities will be 1011778 B.C. Unlimited Liability Co. and New Red Finance, Inc.

The Toronto-based fast food holding company plans to use the proceeds, together with borrowings under its revolver and/or cash on hand, to repay a portion of its term loan B.

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