Flynn Restaurant reworks first-, second-lien loan sizes, widens OIDs

By Sara Rosenberg

New York, Nov. 20 – Flynn Restaurant Group LP upsized its fungible add-on covenant-light first-lien term loan (B2/B) due June 29, 2025 to $210 million from $205 million and downsized its fungible add-on covenant-light second-lien term loan (Caa2/CCC+) due June 29, 2026 to $35 million from $50 million, according to a market source.

Also, the original issue discount on the add-on first-lien term loan was revised to 97.5 from talk in the range of 98.5 to 99, and the discount on the add-on second-lien term loan was changed to 97 from talk in the range of 97.5 to 98, the source said.

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. 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 were scheduled to be due at noon ET on Tuesday, 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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