Restaurant Brands ups term A to $1.25 billion, pushes out revolver

By Wendy Van Sickle

Columbus, Ohio, Dec. 15 – Restaurant Brands International Inc. subsidiaries 1011778 B.C. Unlimited Liability Co. and New Red Finance, Inc. entered into an incremental facility and an amendment to the credit agreement dated Oct. 27, 2014 with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amendment extends the maturity date of the revolver to Dec. 13, 2026 from Oct. 7, 2024 and will increase the existing term loan A facility to $1.25 billion from the $717 million outstanding just prior to the amendment. The term loan A also terminates on Dec. 13, 2026.

Proceeds of the increase in the term loan were used along with cash on hand to complete the previously announced acquisition of Firehouse Restaurant Group, which closed on Wednesday.

The amendment also amended the interest rate to be based on adjusted term SOFR, which is calculated at term SOFR plus a 10 basis points CSA with a 0% floor. The credit spread for the loans is unchanged.

Further, some changes were made to some negative covenants to provide increased flexibility.

Restaurant Brands is a Toronto-based quick service restaurant company.

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