Jack in the Box to replace loans with $1.45 billion securitization

By Rebecca Melvin

New York, June 17 – Jack in the Box Inc. said certain of its subsidiaries plan to replace its existing senior credit facility with a $1.45 billion securitization, including $1.3 billion of senior fixed-rate term notes and $150 million of variable funding notes.

Under the existing credit facility, the company had $315 million outstanding under its term loan and $739.4 million outstanding under the revolving credit facility as of April 14.

Proceeds from a new facility would be used to repay all of the existing debt under the credit facility, to pay transaction costs and fund the reserve accounts associated with the securitized financing facility, and for working capital and general corporate purposes, which may include a return of capital to the company’s equity holders, according to a news release.

The securitization follows the conclusion of a strategic review of financing alternatives. The offering is anticipated to close in July, subject to market and other conditions.

Jack in the Box is a fast-food restaurant company based in San Diego, Calif.

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