The Wendy's Company announced that its indirect wholly owned subsidiary, Wendy's International Inc., has entered into an agreement to refinance its existing credit facility. Subject to certain closing conditions, the company expects the transaction to close on May 16.

Wendy's has estimated the refinancing to generate more than $19 million in ongoing annual interest expense savings, in addition to the approximately $30 million in ongoing annual net interest expense savings from the company's 2012 refinancing.

Based on current market conditions, the refinancing represents a year-over-year reduction in interest expense of approximately 175 basis points.

"This transaction is an important part of our financial management component of our 'Recipe to Win,'" said Steve Hare, Wendy's chief financial officer. "Coupled with our 2012 refinancing, we will reduce our annual net interest expense by approximately $50 million compared to two years ago. This will benefit our cash flow and earnings per share in the coming years, and provides us with additional flexibility with respect to organic growth opportunities and shareholder-enhancing initiatives."

Bank of America Merrill Lynch and Wells Fargo are acting as joint lead arrangers in the transaction.

Read more about operations management.

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