Chicago, Oct. 25 – Burger King France SAS and parent Midco GB SAS announced the pricing of the €620 million senior secured floating-rate notes due 2026 and the €235 million PIK toggle notes due 2027 in a brief company news release.
Burger King priced the five-year floating-rate notes (B3/B) at Euribor plus 475 basis points at par on Friday.
The six-year Midco PIK notes (CCC), also priced at par, have a 7¾% coupon if payment is made in cash or an 8½% coupon if paid in kind.
For the PIK notes, according to earlier information, 2.5 years of call protection will be followed by an optional redemption at par plus half the coupon, then par plus 25% of the coupon and then finally par.
BNP Paribas is handling billing and delivery on the five-year notes. JPMorgan is doing the billing and delivery for the PIK notes.
Joint bookrunners on the Rule 144A and Regulation S deal are BofA Securities, Inc., Credit Agricole CIB, Credit Suisse, Goldman Sachs SE and Morgan Stanley.
One-on-one virtual investor meetings were available through Thursday. The notes priced on Friday.
Proceeds will be used to repay existing debt and pay for transaction-related costs and expenses.
Specifically, the senior secured notes will be used to redeem in full, on the issue date, €638.6 million of existing notes, repay an existing €20 million revolver, repay in full and cancel an existing €80 million French State Covid-19 loan, and extend to NewCo GB an upstream proceeds loan for approximately €196.3 million, the proceeds from which will in turn be used by NewCo to repay in full, along with the proceeds of an equity injection, amounts outstanding under existing PIK notes.
Burger King France is the second-largest quick-service restaurant chain in the French market.
| Issuers: | Burger King France SAS and Midco GB SAS
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| Issue: | Senior notes
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| Bookrunners: | BNP Paribas, JPMorgan, BofA Securities, Inc., Credit Agricole CIB, Credit Suisse, Goldman Sachs SE and Morgan Stanley
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| Trade date: | Oct. 22
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| Settlement date: | Nov. 2
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| Distribution: | Rule 144A and Regulation S
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| Marketing: | Investor meeting
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| Floating-rate notes
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| Issuer: | Burger King SAS
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| Issue: | Senior secured floating-rate notes
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| Amount: | €620 million
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| Maturity: | 2026
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| Coupon: | Euribor plus 475 bps
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| Price: | Par
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| Yield: | Euribor plus 475 bps
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| Ratings: | Moody’s: B3
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| S&P: B
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| PIK toggle notes
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| Issuer: | Midco GB SAS
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| Issue: | Senior PIK toggle notes
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| Amount: | €235 million
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| Maturity: | 2027
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| Cash coupon: | 7¾%
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| PIK coupon: | 8½%
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| Price: | Par
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| Cash yield: | 7¾%
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| PIK yield: | 8½%
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| Call features: | 2.5 years of call protection then optional redemption at par plus half the coupon, then par plus 25% of the coupon and then finally par
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| Rating: | S&P: CCC
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