Arby’s schedules Monday launch for $1.58 billion term loan B

By Sara Rosenberg

New York, Jan. 4 – Arby’s Restaurant Group Inc. (IRB Holding Corp.) is set to hold a bank meeting on Monday to launch its proposed $1,575,000,000 seven-year term loan B, according to a market source.

Barclays, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are the arrangers on the deal.

Commitments are due at noon ET on Jan. 19, the source said.

Based on filings with the Securities and Exchange Commission, the company is also expected to get a $150 million revolver as part of its senior secured credit facilities.

Proceeds will be used to help fund the acquisition of Buffalo Wild Wings Inc. for $157.00 per share in cash in a transaction valued at about $2.9 billion, including net debt.

Other funds for the transaction will come from $485 million of senior unsecured notes, up to $783 million in equity and cash on hand.

First-lien net leverage is 3.6 times and total net leverage is 4.5 times, the source added.

Closing is expected this quarter, subject to the approval of Buffalo Wild Wings shareholders, regulatory approvals and other customary conditions.

Arby’s, a Roark Capital Group portfolio company, is an Atlanta-based quick-service restaurant chain. Buffalo Wild Wings is a Minneapolis-based owner, operator and franchisor of Buffalo Wild Wings restaurants.

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