The Wendy’s Co is refinancing $850 million in senior secured fixed rate notes. Net proceeds from the issuance of the 2019 notes and cash on the company’s balance sheet will be used to repay the subsidiary for outstanding notes from 2015.
The transaction through a subsidiary includes $400 million of senior secured Class A-2-I Notes at a fixed rate of 3.783 percent, and $450 million of senior secured Class A-2-II Notes at a fixed rate of 4.08 percent.
Interest payments on the 2019 notes are payable on a quarterly basis. The anticipated repayment dates of the Class A-2-I Notes and the Class A-2-II Notes will be September 2026 and September 2029, respectively, unless they are prepaid earlier to the extent permitted under the governing documents.
The 2019 notes are expected to be issued in a privately placed securitization transaction.
The subsidiary also intends to enter a purchase agreement to issue $150 million of variable funding senior secured Class A-1 Notes, which allows the subsidiary to borrow on a revolving basis. The Class A-1 Notes will replace the company’s existing $150 million 2018 Notes.
