Jack in the Box plans $625 million credit facility

By Sara Rosenberg

New York, Nov. 21 - Jack in the Box Inc. has received commitments for a new $625 million credit facility, according to an SC TO-I filed with the Securities and Exchange Commission Tuesday.

Wachovia and Morgan Stanley are the lead arrangers on the deal, with Wachovia acting as bookrunner.

The facility consists of a $150 million five-year revolver and a $475 million six-year term loan, with both tranches expected to be priced at Libor plus 137.5 basis points.

Proceeds will be used to retire the company's existing term debt and fund a modified Dutch auction tender offer to purchase up to 5.5 million shares of its common stock at a price neither greater than $61.00 nor less than $55.00 per share for a maximum aggregate purchase price of $335.5 million.

The tender offer is scheduled to expire on Dec. 19.

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

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