The deal includes a $1.125 billion, seven-year B term loan and a $200 million, five-year revolving credit.
Wendy’s expects to use proceeds to refinance the existing senior secured credit facility, including a $150 million revolving credit facility and a $500 million term loan; to finance the repurchase of the issuer’s $565 million of 10% senior notes due 2016, and for general corporate purposes.
Existing issuer ratings are B+/B2. The loans will be governed by secured leverage and interest coverage tests, sources said.
The existing term loan was syndicated in May 2010 via Bank of America Merrill Lynch and Citigroup. The loan is priced at L+350, with a 1.5% LIBOR floor.
Wendy’s is the third largest quick-service hamburger restaurant chain in the world, with 6594 outlets. – Chris Donnelly