Bloomin' Brands Closes Debt Refinancing, Lowering Interest Rate
May 19 2014 - 7:00AM
Bloomin' Brands, Inc. (Nasdaq:BLMN) (the "Company") today announced
that its wholly-owned subsidiary, OSI Restaurant Partners, LLC, has
completed the previously announced refinancing of its senior
secured credit facilities (the "Credit Facilities"). The new Credit
Facilities provide for senior secured financing of up to $1.125
billion, and consist of a $300.0 million Term Loan A, a $225.0
million Term Loan B and a $600.0 million revolving credit
facility.
Prior to the refinancing, the Company had an outstanding balance
of $925.0 million on its Term Loan B. Proceeds from the new
Credit Facilities of $300.0 million of Term Loan A and $400.0
million drawn on the new revolving credit facility are being used
to pay down the outstanding Term Loan B balance from $925.0 million
to $225.0 million. As of the closing, $200.0 million of the
revolving credit facility is undrawn. The total debt of the
Company remains unchanged.
The Term Loan A and revolving credit facility will mature in May
2019. The Term Loan B will mature as scheduled in October
2019.
The interest rate on the Term Loan A and revolving credit
facility is based on the Company's leverage ratio and can range
from LIBOR plus 1.75 percent to 2.25 percent with no LIBOR floor.
The initial interest rate is LIBOR plus 2.00 percent. The Term Loan
B interest rate is LIBOR plus 2.50 percent with a 1.00 percent
LIBOR floor.
Financial Impact of Debt Refinancing
- The Company expects cash interest savings of approximately $6.0
million in fiscal 2014.
- The Company intends to invest the financial savings from this
transaction into accelerating its growth opportunities, including
the development of a second concept in Brazil.
- The Company will incur a loss on extinguishment and
modification of debt between $11.0 million and $12.0
million. These costs will be excluded from the Company's
adjusted metrics in the second fiscal quarter of 2014 since they
are not indicative of the Company's core operating
performance.
Wells Fargo Securities, LLC, Merrill, Lynch, Pierce, Fenner
& Smith, Inc. and J.P. Morgan Securities LLC are acting as
Joint Lead Arrangers and Joint Bookrunners on the transaction.
About Bloomin' Brands, Inc.
Bloomin' Brands, Inc. is one of the largest casual dining
restaurant companies in the world. The portfolio of five
founder-inspired brands is comprised of Outback Steakhouse,
Carrabba's Italian Grill, Bonefish Grill, Fleming's Prime
Steakhouse & Wine Bar and Roy's with more than 1,500
restaurants in 48 states, Puerto Rico, Guam and 21 countries. For
more information, visit bloominbrands.com.
Forward-Looking Statements
Certain statements contained herein are not based on historical
fact and are "forward-looking statements" within the meaning of
applicable securities laws. Generally, these statements can be
identified by the use of words such as "believes,"
"estimates," "anticipates," "expects," "feels," "forecasts,"
"seeks," "projects," "intends," "plans," "may," "will," "should,"
"could," "would" and similar expressions intended to identify
forward-looking statements, although not all forward-looking
statements contain these identifying words. These forward-looking
statements include all matters that are not historical facts. By
their nature, forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially
from the Company's forward-looking statements. These risks and
uncertainties include, but are not limited to: local, regional,
national and international economic conditions; consumer confidence
and spending patterns; price and availability of
commodities, such as beef, chicken, shrimp, pork, seafood, dairy,
potatoes, onions and energy supplies, which are subject to
fluctuation and could increase or decrease more than the Company
expects; weather, acts of God and other disasters; the seasonality
of the Company's business; inflation or deflation; increases in
unemployment rates and taxes; increases in labor and health
insurance costs; competition and changes in consumer tastes and the
level of acceptance of the Company's restaurant concepts (including
consumer acceptance of prices); consumer reaction to public health
issues; consumer perception of food safety; demographic trends; the
cost of advertising and media; government actions and policies;
interest rate changes, compliance with debt covenants and the
Company's ability to make debt payments; the availability of credit
presently arranged from the Company's revolving credit facilities;
and the future cost and availability of credit. Further information
on potential factors that could affect the financial results of the
Company and its forward-looking statements is included in its Form
10-K filed on March 3, 2014, prospectus and prospectus supplement
dated March 4, 2014 and its other filings with the Securities and
Exchange Commission. The Company assumes no obligation to update
any forward-looking statement, except as may be required by law.
These forward-looking statements speak only as of the date of this
release. All forward-looking statements are qualified in their
entirety by this cautionary statement.
CONTACT: Chris Meyer
Vice President, Investor Relations & Treasurer
(813) 830-5311
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