Bloomin’ Brands’ OSI gets $150 million incremental term loan A-1

By Angela McDaniels

Tacoma, Wash., Dec. 16 – Bloomin’ Brands, Inc. subsidiary OSI Restaurant Partners, LLC amended its credit agreement on Friday to add a $150 million incremental term loan A-1, according to an 8-K filing with the Securities and Exchange Commission.

Like the existing term loan A, the term loan A-1 matures on May 16, 2019 and bears interest at Libor plus 175 basis points to 225 bps.

Beginning March 31, the term loan A-1 is repayable in quarterly principal installments ranging from $1.88 million to $3.75 million per quarter, with the outstanding balance due at maturity.

Proceeds were used to repay a portion of the outstanding revolving credit loans under the credit agreement. Prior to the repayment, OSI had an outstanding balance of $617 million under its revolving credit loan and an additional $29.6 million of the revolver was committed for the issuance of letters of credit.

The amendment also increased the credit agreement’s pro forma total net leverage ratio test and consolidated senior secured net leverage ratio test to 3 times from 2.5 times for purposes of restricted payments and mandatory prepayment requirements.

The amendment also allows for the company to make regular quarterly dividend payments upon approval by the board of directors and permits loans or advances to OSI HoldCo, Inc., OSI’s direct parent, to repay debt under existing mortgage and mezzanine financing arrangements that are in place with certain lease entities in an aggregate principal amount of $500 million, with such loans or advancements being treated in lieu of, and not in excess of, restricted payments already allowed under the credit agreement.

Wells Fargo Bank, NA is the administrative agent.

Bloomin’ Brands is a Tampa, Fla., casual dining restaurant company.

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