TAMPA, Fla., May 19, 2014 (GLOBE NEWSWIRE) -- Bloomin' Brands, Inc. (Nasdaq:BLMN) (the "Company") today announced that its wholly-owned subsidiary, OSI Restaurant Partners, LLC, has completed the previously announced refinancing of its senior secured credit facilities (the "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.
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