UPDATE: DineEquity Raises $1.4B Of Debt, Lenders To Control Applebees and IHOP Franchising, Rental and Financing Assets

DineEquity, Inc. (NYSE: DIN), the parent company of Applebee's NeighborhoodGrill & Bar^® and IHOP^® restaurants, today announced that it has entered intoa purchase agreement (the “Purchase Agreement”) under which two of theCompany's indirect, special purpose subsidiaries (the “Co-Issuers”) haveagreed to issue and sell $1.3 billion of their Series 2014-1, Class A-2 FixedRate Senior Secured Notes (the “Notes”). Under the Purchase Agreement, theNotes will be bear interest at a rate of 4.277% per annum, payable quarterly,and will have an expected term of seven years. The Notes are expected to beissued by the Co-Issuers in a privately placed securitized transaction. TheCo-Issuers will own substantially all of the Applebee's and IHOP domesticfranchising, rental and financing assets and will use cash flows generatedfrom these assets to make interest and principal payments on the Notes. TheCo-Issuers also intend to enter into a purchase agreement under which theywill issue $100 million Series 2014-1 Class A-1 Notes which will allow theCo-Issuers to borrow amounts from time to time on a revolving basis.The Company expects to use the proceeds from the expected sale of the Notes torefinance approximately $761 million in outstanding principal amount of its9.5% senior notes and to pay down the entire outstanding balance ofapproximately $464 million of its 3.75% senior secured credit facility. Theremaining proceeds will be primarily used for transaction costs associatedwith the refinancing and general corporate purposes.The closing of the sale of the Notes is expected on September 30, 2014,subject to the satisfaction of various closing conditions.This press release does not constitute an offer to sell or the solicitation ofan offer to buy the Notes or any other security. The Notes have not been, andwill not be, registered under the Securities Act of 1933, as amended (the“Securities Act”), or any state securities laws, and may not be offered orsold in the United States absent registration or an applicable exemption fromthe registration requirements of the Securities Act and applicable statesecurities laws.