Bloomin' Brands, Inc. (the
"Company") 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.
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