Arby’s cuts coupon, raises price on $1.58 billion term loan B

New York, Jan. 18 – Arby’s Restaurant Group Inc. (IRB Holding Corp.) reduced the coupon and narrowed the original issue discount on its proposed $1,575,000,000 seven-year term loan B, according to a market source.

The loan is now priced at Libor plus 325 basis points with a step down to Libor plus 300 bps on net first-lien leverage reaching 2.5 times. Previously price talk was Libor plus 375 bps.

In addition, the OID is now 99.75 instead of 99.5.

The loan continues to have a 1% Libor floor and 101 soft call protection for six months, the source said.

Commitments were due at 1 p.m. ET on Thursday, a deadline previously accelerated from noon ET on Jan. 19.

The company’s $1,725,000,000 of senior secured credit facilities (B1/B) also include a $150 million revolver.

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. Barclays is the administrative agent.

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 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.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.