Restaurant Brands tightens OID on $1.3 billion term loan to 99.75

By Sara Rosenberg

New York, March 3 – Restaurant Brands International Inc. revised the original issue discount on its $1.3 billion incremental senior secured covenant-light term loan due Feb. 17, 2024 to 99.75 from talk of 99.25 to 99.5, according to a market source.

Pricing on the loan is Libor plus 225 basis points with a 1% Libor floor, in line with pricing on the company’s existing term loan.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the lead arrangers and bookrunners on the deal.

Proceeds will be used to help fund the acquisition of Popeyes Louisiana Kitchen Inc. for $79.00 per share in cash, or $1.8 billion.

Other funds for the transaction will come from about $600 million of cash on hand.

Closing is expected by early April, subject to regulatory approvals, the receipt of a majority of Popeyes shares on a fully diluted basis in a tender offer and customary conditions.

Restaurant Brands is an Oakville, Ont.-based quick service restaurant company. Popeyes is an Atlanta-based quick service restaurant company.

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