Papa John's starts roadshow for $400 million eight-year notes; initial guidance low 4% area

By Paul A. Harris

Portland, Ore., Sept. 7 – Pizza-maker Papa John’s International Inc. began a roadshow on Monday for its debut junk bond deal, a $400 million offering of eight-year senior notes (B1/BB-), according to market sources.

Initial guidance has the deal coming to yield in the low 4% area.

Pricing is expected on Thursday.

J.P. Morgan Securities LLC, BofA Securities Inc., PNC Capital Markets LLC, U.S. Bancorp Investments Inc., Truist Securities Inc. and Wells Fargo Securities LLC are the joint bookrunners.

The Rule 144A and Regulation S notes come with three years of call protection.

Concurrently with the closing of the notes, Papa John’s will amend and restate its credit agreement, with JPMorgan Chase Bank, Inc. as administrative agent. Under the amendment, the existing revolver will be increased to $600 million and the maturity will be extended for an additional five-year term.

The Louisville, Ky.-based pizza restaurant franchisee plans to use the proceeds plus the amended revolver to repay bank debt.

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