Arby’s talks $485 million eight-year senior notes to yield 6¾%-7%; pricing Thursday

By Paul A. Harris

Portland, Ore., Jan. 18 – IRB Holding Corp., also known as Arby's Restaurant Group, Inc., talked its $485 million offering of eight-year senior notes (Caa1/CCC+) to yield 6¾% to 7%, according to a market source.

Books close at 1 p.m. ET on Thursday, and the Rule 144A and Regulation S for life offering is set to price thereafter.

Barclays is the left bookrunner. BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the joint bookrunners.

The notes become callable after three years at par plus 50% of the coupon and feature a three-year 40% equity clawback and a 101% poison put.

The Atlanta-based quick-service restaurant chain plans to use the proceeds, along with a $1.58 billion term loan, to help fund its pending acquisition of Buffalo Wild Wings Inc.

Prior to the closing of the acquisition the proceeds will be escrowed. A special redemption at par plus accrued interest would come into effect during the escrow period if the acquisition is not completed.

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