S&P: Wendy's unchanged after add-on

Standard & Poor's said the BB- rating and 2 recovery rating on Wendy's Co.'s senior secured term loan is unchanged after the company announced it will upsize the credit facility by $225 million to redeem senior unsecured notes due in June of 2014.

The company's B+ corporate credit rating and stable outlook also are unchanged.

The refinancing provides the company some cost savings and additional flexibility with a longer dated maturity, S&P said.

The ratings reflect the company's financial aggressive risk profile, the agency said.

S&P also said it expects the company's substantial capital spending program on refreshing stores will limit free cash flow generation, but should benefit the business longer term.

© 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.