Brinker International Inc. said Wednesday it entered into a $400 million unsecured, senior credit facility consisting of a $200 million revolver and a $200 million term loan.
The Dallas-based company, which operates or franchises about 1,700 restaurants under the Chili’s Grill & Bar and Maggiano’s Little Italy brands, said the funds will be used to drive its “Plan to Win,” which includes a $100 million kitchen reengineering program and restaurant refurbishment program.
The Dallas-based company’s new facility, which expires in June 2015, replaced the company’s existing term loan and revolver which were to expire in October 2010 and February 2012, respectively. The five year tenor extends Brinker’s debt maturity profile and allows the credit facility to expire beyond the maturity of the company’s 5.75 percent notes due in May 2014.
“Our ability to close this transaction with an investment grade structure and market-leading five-year facility is a testament to the strength of Brinker’s brands, balance sheet, considerable cash flow and strong banking relationships,” Marie Perry, vice president of investor relations and treasurer, said in a statement.
Brinker will expense about $1.7 million of deferred financing fees in the fourth quarter, it said.
Contact Sarah Lockyer at [email protected]