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GE Capital Markets Arranges $132MM Facility for Papa Murphy’s

August 29, 2014, 07:46 AM
Filed Under: Restaurant

Papa Murphy's Holdings, Inc. has successfully closed on a new $132 million senior secured credit facility. The new five year facility, consisting of a $112 million senior secured term loan and a $20 million revolving credit facility, replaces the Company's existing $122 million facility, which consisted of a $112 million senior secured term loan and a $10 million revolving credit facility. As of the end of the company's fiscal second quarter on June 30, 2014, the balance outstanding under the existing credit facility was $112.1 million.

Based on current market conditions, the refinancing represents a 200 basis point reduction in borrowing costs and is estimated to reduce annual cash interest expense by approximately $2.25 million per year and benefit on-going annual earnings per share in the range of $0.09-$0.10, on a fully-diluted basis.

Ken Calwell, President and Chief Executive Officer of Papa Murphy's Holdings, Inc. said, "We are pleased to have completed the refinancing of this new credit facility, which was made possible as a result of our improved credit profile as a public company. The new facility gives us even greater financial flexibility to support the tremendous growth potential of this business while at the same time significantly reducing our cost of debt and improving EPS."

GE Capital Markets, Inc. was sole lead arranger for the transaction.  Citizens Bank, N.A. was documentation agent and Wells Fargo Banks, N.A. was syndication agent for the transaction.

Papa Murphy's is a franchisor and operator of the largest Take 'N' Bake pizza chain in the United States, selling uncooked pizzas that customers bake at home. The company was founded in 1981 and currently operates over 1,400 franchised and company-owned fresh pizza stores in 38 states, Canada and United Arab Emirates.

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