By Paul A. Harris
Portland, Ore., April 14 - Burger King Capital Holdings LLC and Burger King Capital Finance, Inc. raised $400 million via the sale of eight-year senior discount notes (Caa1/CCC+/), which it priced at 58.613 to yield 11% on Thursday, according to a market source.
The yield printed at the tight end of the 11% to 11¼% price talk.
The notes accrete to par in five years.
J.P. Morgan Securities LLC and Barclays Capital, Inc. were the joint bookrunners for the quick-to-market deal.
The Miami-based fast-food restaurant company plans to use the proceeds either to fund a dividend or fund a future strategic investment.
The company plans to use the cash by the end of 2011.
| Issuer: | Burger King Capital Holdings LLC and Burger Capital Finance, Inc.
|
| Proceeds: | $400 million
|
| Maturity: | 2019
|
| Securities: | Senior discount notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Barclays Capital, Inc.
|
| Coupon: | 0%
|
| Price: | 58.613
|
| Yield: | 11%
|
| Accretion rate: | Accretes to par in five years
|
| Spread: | 785 bps
|
| Call features: | Callable in four years at 105.5
|
| Trade date: | April 14
|
| Settlement date: | April 19
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A for life
|
| Price talk: | 11% to 11¼%
|
| Marketing: | Quick to market
|
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