On February 15, Popeyes Louisiana Kitchen amended its credit agreement with Wells Fargo as administrative agent. On February 21, Burger King purchased the company for $1.8 billion in a transaction scheduled to close in April.
“We are pleased to report another year of strong performance at Popeye’s,” said Cheryl Bachelder, Popeyes CEO in the company’s Q4/16 report. “Driving the top line through a careful balance of innovative offerings and core menu value has created momentum in the fourth quarter, despite challenging market conditions. In 2016, we delivered global same-store sales growth of 1.7%, our 8th consecutive year of positive same-store sales growth, and 216 new restaurant openings around the world.”
The credit amendment consists of a $150 million dollar revolving loan expansion under the 2016 credit facility. This expanded capacity will give the company access to a total of $400 million dollars of revolving debt capacity. The company currently has drawn $155.5 million of this total debt capacity. Availability for short-term borrowings and letters of credit under the revolving credit facility after giving effect to this transaction was $244.4 million. The facility is scheduled to mature on January 22, 2021. There are no required principal payments due prior to the maturity date.
Wells Fargo served as administrative agent, swingline lender and issuing lender. Bank of America was syndication agent. Capital One and Regions were co-documentation agents. Wells Fargo Securities and Merrill Lynch were joint lead arrangers and joint bookrunners.
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