Restaurant Brands International (NYSE), the parent company of Burger King” data-wpil-keyword-link=”linked”>Burger King, announced it has priced an offering of $1.2 billion in aggregate principal amount of 6.125% First Lien Senior Secured Notes due 2029. This amount is $200 million more than the originally planned offering size.
The offering of the Notes is expected to close around June 17.
RBI (QSR) plans to use the proceeds from the Notes to refinance part of its existing term loan B facility, which is due in September 2030. The funds will also be used to cover related fees and expenses and for general corporate purposes.
The Notes will be secured obligations, taking priority as first lien senior secured.
Restaurant Brands (QSR) also stated that it will reprice and reduce its Term Loan B Facility. The loan will decrease from $5.912 billion at an Adjusted Term SOFR Rate plus 2.25% to $4.75 billion at an Adjusted Term SOFR Rate plus 1.75%. This adjustment reflects the anticipated use of the net proceeds from the Notes offering.
According to Restaurant Brands (QSR), these transactions are expected to maintain the company’s current net leverage and result in annualized net interest savings.