Canton, Mass.-based Dunkin’ Brands Inc., parent company of Baskin-Robbins and Dunkin’ Donuts, has completed the re-pricing of its term loan.
Additionally, the company increased its term loan from $1.25 billion to $1.4 billion. The total debt of the company will remain unchanged as the incremental proceeds of $150 million will be used to repay an equal amount of its senior notes.
The new interest rate on the term loan is LIBOR plus 3 percent with a LIBOR floor of 1.25 percent. The previous interest rate was LIBOR plus 4.25 percent with a LIBOR floor of 1.50 percent.
The re-pricing and reallocation of debt will save the company approximately $26 million in interest expense annually.
"The strong credit market and high demand for Dunkin' Brands' term loans have enabled us to lower our weighted average cost of debt, further improve our capital structure and better position ourselves to take advantage of our global growth opportunities," said Neil Moses, Dunkin' Brands chief financial officer.
The maturity date for the term loan remains Nov. 23, 2017.
