Restaurant Brands launches add-on loan in morning, wraps in afternoon

By Sara Rosenberg

New York, May 3 – Restaurant Brands International Inc. held a lender call on Wednesday morning to launch a fungible $500 million add-on term loan (B+) due Feb. 17, 2024 with original issue discount talk of 99.5 to 99.75, according to market sources.

And, later in the day, the term loan was downsized to $250 million and the discount was tightened to 99.875, sources said.

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, and the debt has 101 soft call protection until August.

J.P. Morgan Securities LLC is the lead bank on the deal.

Proceeds will be used to help fund the redemption of 9% class A cumulative compounding redeemable preferred shares, for general corporate purposes and to pay fees and expenses related to this offering.

Other funds for transaction will come from the issuance of $1.5 billion in first-lien senior secured notes due 2024, upsized from $1 billion, sources added.

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

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