San Diego-based Jack in the Box Inc. (NASDAQ: JACK) has entered into a purchase agreement under which one of its subsidiaries has agreed to sell $1.3 billion in bonds. According to a press release, the 2019 bonds, or notes, are expected to be issued in a privately placed securitization transaction.
The anticipated repayment dates for the $575 million of its Series 2019-1 3.982% Fixed Rate Senior Secured Notes, Class A-2-I; $275 million of its Series 2019-1 4.476% Fixed Rate Senior Secured Notes, Class A-2-II, and $450 million of its Series 2019-1 4.970% Fixed Rate Senior Secured Notes, Class A-2-III will be August 2023, August 2026 and August 2029, respectively. Interest payments on the 2019 Notes are payable on a quarterly basis, according to the release.
The net proceeds from the sale of the 2019 Notes will be used to repay all of the existing debt under Jack in the Box’s “senior facility, to pay the transaction costs and to fund the reserve accounts associated with the securitized financing facility, and for working capital purposes and for general corporate purposes, which may include a return of capital to the company’s equity holders.”
The master issuer will be allowed to borrow amounts from time to time. The sale is expected to be finalized this month.
Jack in the Box operates and franchises more than 2,200 restaurants in 21 states and Guam.
Travel & Hospitality reporter Mariel Concepcion can be reached at email@example.com or 858-634-4625.