Structure and pricing on CKE Restaurants' $150 million loan emerges

By Sara Rosenberg

New York, Sept. 29 - CKE Restaurants Inc.'s proposed credit facility (B1/B), which is expected to launch on Tuesday, is now expected to be sized at $150 million, with $25 million of that amount as a term loan and $125 million as a revolver, according to market sources. BNP Paribas is the lead bank on the deal.

Both tranches are priced with an interest rate of Libor plus 375 basis points, sources said.

Previously, it was expected that the facility would be sized anywhere from $150 to $175 million, with rumors suggesting that the deal would consist of a $50 million term loan and a $125 million revolver.

Proceeds from the new loan will be used to repay part of CKE's 4¼% convertible subordinated notes due 2004 and to replace the existing $100 million senior credit facility, according to a news release.

The company plans to use proceeds from an upsized $90 million of convertible subordinated notes offering, which priced Tuesday to yield 4%, to repay the remaining 4¼% convertible subordinated notes due 2004.

CKE is a Santa Barbara, Calif. restaurant operator.

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