FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
Skip Navigation LinksHome / Press Releases / Read Press Release


Bloomin’ Brands Closes Debt Refi With Wells Fargo Securities, Others

May 19, 2014, 07:34 AM
Filed Under: Restaurant

Bloomin' Brands, Inc. announced that its wholly-owned subsidiary, OSI Restaurant Partners, LLC, has completed the previously announced refinancing of its senior secured credit facilities. The new credit facilities provide for senior secured financing of up to $1.125 billion, and consist of a $300.0 million Term Loan A, a $225.0 million Term Loan B and a $600.0 million revolving credit facility.

Prior to the refinancing, the company had an outstanding balance of $925.0 million on its Term Loan B. Proceeds from the new Credit Facilities of $300.0 million of Term Loan A and $400.0 million drawn on the new revolving credit facility are being used to pay down the outstanding Term Loan B balance from $925.0 million to $225.0 million. As of the closing, $200.0 million of the revolving credit facility is undrawn. The total debt of the Company remains unchanged.

The Term Loan A and revolving credit facility will mature in May 2019. The Term Loan B will mature as scheduled in October 2019.

The interest rate on the Term Loan A and revolving credit facility is based on the Company's leverage ratio and can range from LIBOR plus 1.75 percent to 2.25 percent with no LIBOR floor. The initial interest rate is LIBOR plus 2.00 percent. The Term Loan B interest rate is LIBOR plus 2.50 percent with a 1.00 percent LIBOR floor.

Financial Impact of Debt Refinancing:

  • The Company expects cash interest savings of approximately $6.0 million in fiscal 2014.
  • The Company intends to invest the financial savings from this transaction into accelerating its growth opportunities, including the development of a second concept in Brazil. 
  • The Company will incur a loss on extinguishment and modification of debt between $11.0 million and $12.0 million. These costs will be excluded from the Company's adjusted metrics in the second fiscal quarter of 2014 since they are not indicative of the Company's core operating performance.

Wells Fargo Securities, LLC, Merrill, Lynch, Pierce, Fenner & Smith, Inc. and J.P. Morgan Securities LLC are acting as Joint Lead Arrangers and Joint Bookrunners on the transaction.

Bloomin' Brands, Inc. is one of the largest casual dining restaurant companies in the world. The portfolio of five founder-inspired brands is comprised of Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, Fleming's Prime Steakhouse & Wine Bar and Roy's with more than 1,500 restaurants in 48 states, Puerto Rico, Guam and 21 countries.

Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.