New Issue: Dunkin' Brands prices $625 million 9 5/8% eight-year notes at 98.5 to yield 9.9%

By Paul A. Harris

St. Louis, Nov. 15 - Dunkin' Brands, Inc. priced a $625 million issue of 9 5/8% eight-year senior notes (Caa2/CCC+/) at 98.5 to yield 9.9% on Monday, according to an informed source.

J.P. Morgan Securities LLC, Barclays Capital Inc., Bank of America Merrill Lynch and Goldman Sachs & Co. were the joint bookrunners for the quick-to-market deal.

Proceeds will be used to repay the outstanding securitization debt of Dunkin' Brands' securitization subsidiaries and to pay a cash dividend to Dunkin' Brands' stockholders.

Dunkin' Brands is the Canton, Mass.-based owner of Dunkin' Donuts and Baskin-Robbins franchised restaurants.

Issuer:	Dunkin' Finance Corp. (to be assumed by Dunkin' Brands, Inc.)
Face amount:	$625 million
Proceeds:	$615,625,000
Maturity:	Dec. 1, 2018
Securities:	Senior notes
Bookrunners:	J.P. Morgan Securities LLC, Barclays Capital Inc., Bank of America Merrill Lynch, Goldman Sachs & Co.
Co-managers:	Citigroup Global Markets Inc., Credit Suisse Securities, Deutsche Bank Securities Inc., Morgan Stanley & Co. Inc.
Coupon:	9 5/8%
Price:	98.5
Yield:	9.9%
Spread:	754 bps
Call features:	Callable on Nov. 23, 2010 at 100.5, Dec. 1, 2011 at 102.5, Dec. 1, 2012 at 102, par on and after Dec. 1, 2013
Change-of-control put:	101%
Trade date:	Nov. 15
Settlement date:	Nov. 23
Ratings:	Moody's: Caa2
	Standard & Poor's: CCC+
Distribution:	Rule 144A and Regulation S with registration rights
Marketing:	Quick to market

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