Jack in the Box obtains $600 million facility at Libor plus 200 bps

By Sara Rosenberg

New York, Nov. 8 - Jack in the Box Inc. closed on a $600 million amended and restated five-year credit facility that is initially priced at Libor plus 200 basis points., according to an 8-K filed with the Securities and Exchange Commission on Thursday.

The spread can range from Libor plus 175 bps to 225 bps based on leverage.

The facility consists of a $400 million revolver, of which about half is drawn, and a $200 million term loan.

There is an unused fee on the revolver that can range from 30 bps to 40 bps based on leverage.

Covenants include a minimum fixed-charge coverage ratio of 1.50 to 1.00, a maximum leverage ratio of 2.50 to 1.00 and maximum capital expenditures.

Wells Fargo Securities LLC and Bank of America Merrill Lynch acted as the joint lead arrangers and bookrunners on the deal, which was completed on Nov. 5.

Proceeds, along with cash on hand, were used to repay all existing credit facility borrowings, and are available for general corporate purposes.

Jack in the Box is a San Diego-based restaurant company.

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