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Monday, Mar 18, 2024
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Jack in the Box Refinances

Jack in the Box Inc. said June 29 it completed a new five- year, $600 million refinancing package made up of a $400 million revolving credit line and a $200 million term loan.

Proceeds from the refinancing will be used to retire a $370 million term loan due in December, and to replace an existing revolving line of $150 million, of which $20 million was drawn down, the company said.

As of the close of the refinancing, about half of the credit line will be drawn, and $200 million was outstanding on the term loan.

The interest on the credit facility is based on the company’s leverage ratio but will range from Libor plus 2.25 percent to 2.75 percent, with the initial rate at 2.5 percent. At the current London Interbank Overseas Rate, that means an interest of about 3.67 percent annually.

Joint lead arrangers and book managers for the refinancing facility are Wells Fargo Securities, Banc of America Securities and Morgan Stanley Senior Funding.

— Mike Allen

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