S&P rates Whatabrands loans B+

S&P said it assigned its B issuer credit rating to Whatabrands LLC (Whataburger) and assigned a B+ issue-level rating and 2 recovery rating to the company's first-lien credit facilities, which include a $200 million revolver and a $1.33 billion term loan.

The outlook is stable.

BDT Capital is acquiring Whataburger for about $4.7 billion, which it will fund with about $2.8 billion of debt and debt-like preferred equity and $2.1 billion of common equity.

“We view the company's pro forma capital structure as significantly leveraged, though we believe that Whataburger maintains a solid market position in its regional footprint,” the agency said in a news release.

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