Jack in the Box Inc. Amends Credit Agreement
July 07 2015 - 8:01AM
Business Wire
Jack in the Box Inc. (NASDAQ: JACK) today announced completion
of an amendment to its existing senior credit facility. Under the
terms of the amendment, the credit facility was increased to $1.2
billion, which consists of a $300 million term loan and $900
million revolving credit facility.
Following the amendment on July 1, 2015, $300 million was
outstanding on the term loan and approximately $382 million was
drawn or used for letters of credit under the revolving credit
facility.
There was no change to the maturity date or interest rates for
either facility. The maturity date for both the revolving credit
facility and the term loan will remain in March 2019. The interest
rate on the senior credit facility is based on the company’s
leverage ratio and can range from LIBOR plus 1.25 percent to 2.00
percent. The interest rate as of the date of the amendment was
LIBOR plus 1.75 percent.
The amendment also raised the maximum leverage ratio from 3.0
times to 3.5 times, permits unlimited restricted payments if pro
forma leverage is less than 3.0 times (from 2.75 times previously),
subject to pro forma fixed charge covenant compliance, and
eliminates the annual limitation on capital expenditures.
“The amended credit agreement provides us with more than $400
million of additional borrowing capacity to support the company’s
strategic priorities,” said Jerry Rebel, executive vice president
and chief financial officer. “With our growing level of EBITDA, the
extra capacity will enable us to comfortably maintain leverage
within a 2 to 3 times range.”
Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner &
Smith Incorporated, and Cooperative Centrale
Raiffesisen-Boerenleenbank B.A. “Rabobank International” New York
Branch served as joint lead arrangers and joint lead
bookrunners.
About Jack in the Box Inc.
Jack in the Box Inc. (NASDAQ: JACK), based in San Diego, is a
restaurant company that operates and franchises Jack in the Box®
restaurants, one of the nation’s largest hamburger chains, with
more than 2,200 restaurants in 21 states and Guam. Additionally,
through a wholly owned subsidiary, the company operates and
franchises Qdoba Mexican Grill®, a leader in fast-casual dining,
with more than 600 restaurants in 47 states, the District of
Columbia and Canada. For more information on Jack in the Box and
Qdoba, including franchising opportunities, visit www.jackinthebox.com or www.qdoba.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20150707005175/en/
Jack in the Box Inc.Investor Contact:Carol
DiRaimo, (858) 571-2407orMedia Contact:Brian Luscomb, (858)
571-2291
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