By Paul A. Harris
St. Louis, Oct. 6 - DineEquity, Inc. priced an $825 million issue of eight-year senior unsecured notes (B3/CCC+/) at par to yield 9½% on Wednesday, according to an informed source.
The yield printed tight to the 9 5/8% area price talk.
Timing was moved ahead on the deal, which was initially scheduled to price on Thursday.
Barclays Capital Inc. and Goldman Sachs & Co. were the joint bookrunners.
Proceeds will be used to refinance outstanding Applebee's and IHOP securitization debt and to redeem a portion of series A stock.
DineEquity is the Glendale, Calif.-based owner of Applebee's Neighborhood Grill & Bar and IHOP Restaurants.
| Issuer: | DineEquity, Inc.
|
| Amount: | $825 million
|
| Maturity: | Oct. 30, 2018
|
| Securities: | Senior unsecured notes
|
| Bookrunners: | Barclays Capital Inc., Goldman Sachs & Co.
|
| Co-manager: | Raymond James & Associates
|
| Coupon: | 9½%
|
| Price: | Par
|
| Yield: | 9½%
|
| Spread: | 751 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Oct. 30, 2014, then callable at 104.75, 102.375, par on and after Oct. 30, 2016
|
| Equity clawback: | 35% at 109.50 until Oct. 30, 2013
|
| Change-of-control put: | 101%
|
| Trade date: | Oct. 6
|
| Settlement date: | Oct. 19
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 9 5/8% area
|
| Marketing: | Roadshow
|
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