Flynn Restaurant reveals OID talk on $255 million of term loans

By Sara Rosenberg

New York, Nov. 8 – Flynn Restaurant Group LP launched on Thursday its fungible $205 million add-on covenant-light first-lien term loan (B2/B) due June 29, 2025 with original issue discount talk of 98.5 to 99 and its fungible $50 million add-on covenant-light second-lien term loan (Caa2/CCC+) due June 29, 2026 with discount talk of 97.5 to 98, according to a market source.

Pricing on the add-on first-lien term loan is Libor plus 350 basis points with a 0% Libor floor, and pricing on the add-on second-lien term loan is Libor plus 700 bps with a 0% Libor floor, in line with the company’s existing term loans.

The add-on first-lien term loan has 101 soft call protection for six months, the source said. Call protection on the add-on second-lien loan matches the call protection on the existing second-lien term loan.

Bank of America Merrill Lynch, Citizens Bank, Fifth Third, KKR Capital Markets and Wells Fargo Securities LLC are the lead arrangers on the deal.

Commitments are due at noon ET on Nov. 16, the source added.

Proceeds will be used with extra proceeds from the June loan transaction to purchase US Beef, the largest franchisee in the Arby’s restaurant system, for about $580 million.

Flynn Restaurant is a San Francisco-based restaurant franchisee operator.

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