Popeyes' parent company AFC Enterprises Inc. this week announced the completion of a new, five-year $125 million revolving credit facility. At closing, the stated interest under the new facility is determined using the LIBO Rate plus 125 basis points, according to a news release.
Pursuant to the refinancing, the company borrowed $63 million to retire its previous facility, leaving approximately $62 million available to borrow and invest in the company's growth strategies. The interest rate at closing under the new credit facility is 1.49 percent compared to 3.90 percent under the previous credit facility. In Q4, the company plans to recognize approximately $400,000 of non-cash charges and defer approximately $700,000 of fees associated with the refinancing.
"This new five-year credit facility provides more financial flexibility for our rapidly growing company. We are grateful to our lenders who collaborated closely with our team to complete this refinancing," said Mel Hope, AFC Enterprises CFO.
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