TAMPA, Fla., April 10, 2013 (GLOBE NEWSWIRE) -- Bloomin' Brands, Inc. (the "Company") (Nasdaq:BLMN) today announced that its wholly-owned subsidiary, OSI Restaurant Partners, LLC ("OSI"), completed the repricing of its existing $1.0 billion senior secured term loan B credit facility. The repricing replaces OSI's existing senior secured term loan B credit facility with a new senior secured term loan B credit facility ("Term Loan B") at the current outstanding principal balance of $975.0 million. In addition, the repricing reduces the applicable interest rate margin on the Term Loan B from 2.50% to 1.50% for base rate loans and from 3.50% to 2.50% for Eurocurrency rate loans and reduces the interest rate floor on the Term Loan B from 2.25% to 2.00% for base rate loans and from 1.25% to 1.00% for Eurocurrency rate loans.
"The strong credit market and Bloomin' Brands improved credit profile have enabled us to reduce our cost of debt. This serves to further bolster our capital structure and provides us with additional flexibility with respect to future growth opportunities," said the Company's Chief Financial Officer, David Deno.
Based on current market conditions, the repricing represents a reduction in interest expense of 125 basis points and is expected to reduce annual cash interest payments by approximately $12.0 million, before considering future principal payments. Pursuant to the terms of the existing credit agreement, the Company is required to pay a 1.0% prepayment penalty of approximately $10.0 million.The maturity date for the Term Loan B remains October 26, 2019 and no changes were made to the financial covenants or scheduled amortization. Deutsche Bank Securities Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated acted as Joint Lead Arrangers, and each of Deutsche Bank Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Goldman Sachs USA, J.P. Morgan Securities LLC, and Morgan Stanley Senior Funding, Inc, acted as Joint Lead Bookrunners, in connection with the repricing.