Jack in the Box expands senior credit facility to $1.2 billion

By Wendy Van Sickle

Columbus, Ohio, July 7 – Jack in the Box Inc. increased its senior credit facility to $1.2 billion, according to a company news release issued Tuesday.

The amended facility consists of a $300 million term loan, up from $187.5 million, and a revolving credit facility of $900 million, up from $600 million.

The amendment increased the company’s total borrowing capacity by more than $400 million, according to the release.

The amendment also raised the maximum leverage ratio from 3.0 times to 3.5 times, permits unlimited restricted payments if pro forma leverage is less than 3.0 times (from 2.75 times previously), subject to pro forma fixed charge covenant compliance and eliminated the annual limit on capital expenditures.

Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith Inc. and Rabobank International New York Branch served as joint lead arrangers and joint lead bookrunners. Well Fargo Bank, NA is the administrative agent.

The credit facility’s interest range remains Libor plus 125 basis points to Libor plus 200 bps, depending on the leverage ratio. Currently, interest is at Libor plus 175 bps.

The maturity date remains March 2019.

At the closing of the amendment, $300 million was outstanding on the term loan and about $382 million was drawn or used for letters of credit under the revolver.

This was the second amendment to credit facility dated March 19, 2014.

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

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