The Wendy’s Company (the “Company”) announced today that Wendy’s International, Inc., its wholly-owned subsidiary (“Wendy’s International”), has completed a new senior secured credit facility, which includes a $200 million revolving credit facility and a $1,125 million term loan.
Proceeds from initial borrowings of $625.7 million under the new term loan were used to retire approximately $466.7 million of outstanding indebtedness under the existing senior secured credit facility of Wendy’s Restaurants, LLC, the Company’s wholly-owned subsidiary and Wendy’s International’s direct parent company (“Wendy’s Restaurants”), to purchase $124.225 million aggregate principal amount of Wendy’s Restaurants’ 10.00% Senior Notes due 2016 (the “Notes”) (CUSIP No. 95058TAB3) in the tender offer described below, and to pay related fees and expenses.
The interest rate on the new senior secured credit facility is based on a LIBOR rate, which has a floor of 1.25%, plus 3.5%, or a base rate, which has a floor of 2.25%, plus 2.5%. The term loan was issued at 99.0% of par, which represented an original issue discount of 1.0%. Bank of America, N.A. and Wells Fargo Securities, LLC served as joint lead arrangers and joint book managers for the new credit facility.
The Company also announced today the expiration and the final results of the previously announced tender offer by Wendy’s Restaurants to purchase for cash any and all of its outstanding Notes. The tender offer expired at the end of the day, 12:00 midnight, New York City time, on May 14, 2012. Pursuant to the tender offer, Wendy’s Restaurants purchased $124.225 million aggregate principal amount, or approximately 22%, of the outstanding $565 million aggregate principal amount of Notes.
The Notes purchased pursuant to the tender offer will be cancelled and will cease to be outstanding. Notes that were not validly tendered and accepted for purchase in the tender offer will remain obligations of Wendy’s Restaurants. Subject to market conditions and other factors, Wendy’s Restaurants currently intends to redeem the Notes that remain outstanding on July 16, 2012.