NPC International announces refinancing of its outstanding US$368M term loan and amends its US$100M revolving credit facility
Nevin Barich
OVERLAND PARK, Kansas
,
December 17, 2013
(press release)
–
NPC International, Inc. (the “Company” or "NPC") today announced that it has refinanced its outstanding $368 million term loan and amended its $100 million revolving credit facility. The refinancing resulted in a 25 basis point reduction in the spread over LIBOR on the Company’s term loan borrowings and lowered the term loan LIBOR floor by 25 basis points. This refinancing also increased the capacity on the revolving credit facility to $110 million and resulted in a 25 basis point reduction in the spread over LIBOR on the revolving credit facility.
At prevailing LIBOR rates this action serves to reduce annual interest expense by approximately $1.8 million. The Company paid transaction related expenses totaling approximately $0.6 million to effectuate the refinancing. This refinancing also eliminated the annual limitation on capital expenditures covenant, although other existing covenants remain in place. No other material changes were made to the Company's senior credit facility in the refinancing.
“The Company's robust cash flow characteristics coupled with strong relationships with our financing partners allowed us to avail ourselves of favorable market conditions a third time following the sale of the Company in December 2011. This will increase our free cash flow in support of the Company’s growth plans.”
Jim Schwartz, Chairman and CEO of NPC International, Inc., said, “The Company's robust cash flow characteristics coupled with strong relationships with our financing partners allowed us to avail ourselves of favorable market conditions a third time following the sale of the Company in December 2011. This will increase our free cash flow in support of the Company’s growth plans.”
NPC International, Inc. is the world’s largest Pizza Hut franchisee and currently operates 1,252 Pizza Hut restaurants and delivery units in 28 states and 90 Wendy’s units in 3 states.
© 2024 Business Wire, Inc., All rights reserved.
