Jack in the Box completes refinancing

 
March 21, 2014

Jack in the Box Inc. has completed a new five-year $800 million senior credit facility, comprised of a $600 million revolving credit facility and $200 million term loan.

According to a news release, proceeds from the refinancing will be used to retire the previous $600 million senior credit facility that was due in November 2017. As of the closing, approximately $243 million of the revolving credit facility will be drawn or used for letters of credit and $200 million will be outstanding on the term loan. Both will mature in March 2019.

"As we near completion of the transformation of our business model for the Jack in the Box brand and generate higher levels of cash flow from our franchising activities, we're comfortable with additional leverage," said Jerry Rebel, executive vice president and chief financial officer. "The new credit agreement provides a flexible, longer-term capital structure to support the company's strategic plan, including additional potential to return cash to shareholders."


Topics: Financing and capital improvements , Operations Management


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