AFC Enterprises announces completion of new five-year, US$125M revolving credit facility
December 19, 2013
– Flexible New Facility Increases Borrowing Capacity and Reduces Borrowing Costs
AFC Enterprises, Inc. (NASDAQ: AFCE), the franchisor and operator of Popeyes® restaurants, announced the completion of a new, five-year $125 million revolving credit facility on December 18, 2013. At closing, the stated interest under the new facility is determined using the LIBO Rate plus 125 basis points. The spread above the LIBO Rate adjusts from 125 to 250 basis points depending on the Company's total leverage.
Pursuant to the refinancing, the Company borrowed $63 million to retire its previous facility, leaving approximately $62 million available to borrow and invest in the Company’s growth strategies. The interest rate at closing under the new credit facility is 1.49% compared to 3.90% under the previous credit facility. In the fourth quarter, the Company expects to recognize approximately $400,000 of non-cash charges and defer approximately $700,000 of fees associated with the refinancing.
"This new five-year credit facility provides more financial flexibility for our rapidly growing company. We are grateful to our lenders who collaborated closely with our team to complete this refinancing," stated Mel Hope, AFC Enterprises Chief Financial Officer.
AFC Enterprises, Inc. is the franchisor and operator of Popeyes® restaurants, the world's second-largest quick-service chicken concept based on number of units. As of October 6, 2013, Popeyes had 2,187 operating restaurants in the United States, Guam, Puerto Rico, the Cayman Islands and 27 foreign countries. AFC’s primary objective is to deliver sales and profits by offering excellent investment opportunities in its Popeyes brand and providing exceptional franchisee support systems and services to its owners. AFC Enterprises can be found at www.afce.com.
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