Jack in the Box Inc. said Tuesday it closed on a $600 million credit facility which will be used to pay down existing bank debt.
The San Diego-based parent to the 2,200-unit Jack in the Box quick-service chain and the 500-unit fast-casual Qdoba Mexican Grill concept, said the new, five-year facility is comprised of a $400 million revolving credit facility and a $200 million term loan.
Proceeds from the refinancing will be used to retire a $150 million revolver, which was due in December 2011, as well as a $370 million term loan due in December 2012.
“By refinancing at this time, we’re creating a longer-term capital structure with greater flexibility to support the company’s strategic plan,” said Jerry Rebel, Jack in the Box Inc.’s executive vice president and chief financial officer.
About half of the $400 million revolving credit facility will be drawn and $200 million will be outstanding on the term loan, Jack in the Box said. Both will mature in June 2015.
The company said it is expected to book about $2.3 million in deferred financing fees in the third quarter as a result of the refinancing.
Wells Fargo Securities LLC, Banc of America Securities LLC and Morgan Stanley Senior Funding Inc. served as joint lead arrangers and joint book managers.
Contact Lisa Jennings at [email protected]