News

Jack in the Box pushes forward with nearly $1.5B in refinancing plans

June 17, 2019

Jack in the Box Inc. said it will complete refinancing of its existing senior credit facility with a new securitized financing facility in order to pay down $315 million under a term loan and more than $739 million under its revolving credit facility, a news release said. 

The new $1.45 billion securitized financing facility will be comprised of $1.3 billion in senior fixed-rate term notes and $150 million of variable funding notes. Net proceeds of the facility are planned for: 

• Repayment of all existing debt under senior credit facility.
• Payment of transaction costs.
• Funding reserve accounts associated with the securitized financing facility.
• Working capital and general corporate purposes, possibly including returning capital to brand equity holders.

The deal is expected to close next month if the company is successful with its plan. Jack in the Box has more than 2,200 restaurants in 21 states and Guam, though the company. Today's move follows an announcement last month that the QSR would not be sold, but that a refinancing plan would proceed forward in an effort to increase the chain's value long-term.