| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers C > Headlines for Calpine Corp. > News item |
Burger King considers Tim Hortons merger, loans steady; Calpine flat with acquisition news
By Sara Rosenberg
New York, Aug. 25 – Burger King Worldwide Inc.’s term loan held strong in the secondary market on Monday as talk emerged that the company is contemplating merging with Tim Hortons Inc., and Calpine Corp.’s term loans were unmoved with a power plant purchase announcement.
Burger King stays firm
Burger King’s term loan was unchanged in trading on Monday at par bid, par ½ offered as the company disclosed in a news release that it is in discussions regarding a merger with Tim Hortons, according to a trader.
The contemplated agreement would have 3G Capital, the majority owner of Burger King, as the owner of the majority of the shares of the new company on a pro forma basis, with the remainder held by existing shareholders of Tim Hortons and Burger King.
Within this new entity, Tim Hortons and Burger King would operate as standalone brands.
The new merged company would have headquarters in Canada, a public listing and would have about $22 billion of system sales.
The transaction remains subject to negotiation of definitive agreements.
Burger King is a Miami-based fast food hamburger chain. Tim Hortons is an Oakville, Ont.-based restaurant chain.
Calpine steady
Calpine’s term loan B debt was seen at 99¾ bid, par ¼ offered, flat on the day, following news of an acquisition that will be funded with cash on hand, a trader remarked.
The company is buying a nominal 809 megawatt, combined-cycle power plant and related plant inventory from Exelon Corp. for $530 million, or about $655 per kilowatt, subject to working capital adjustments.
Closing is expected in the fourth quarter, subject to customary conditions, antitrust review under the Hart-Scott-Rodino Act and FERC approval.
Calpine is a Houston-based generator of electricity from natural gas and geothermal resources.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.