Whatabrands cuts spread on $2.3 billion term B to Libor plus 325 bps

By Sara Rosenberg

New York, July 20 – Whatabrands LLC (Whataburger) reduced pricing on its $2.3 billion seven-year covenant-lite first-lien term loan B to Libor plus 325 basis points from Libor plus 350 bps, according to a market source.

The term loan has a 25 bps step-down at 5x net first-lien leverage, a 0.5% Libor floor, an original issue discount of 99.5, 101 soft call protection for six months and amortization of 1% per annum.

The company’s $2.5 billion of credit facilities (B2/B) also include a $200 million revolver.

Morgan Stanley Senior Funding Inc., BofA Securities Inc., JPMorgan Chase Bank and UBS Investment Bank are the joint lead arrangers and bookrunners on the deal.

Recommitments were scheduled to be due at 5 p.m. ET on Tuesday, the source added.

Allocations are expected on Wednesday.

Proceeds will be used to refinance an existing term loan B and facilitate a broader recapitalization.

Whatabrands is a San Antonio-based restaurant company.

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