“This new five-year credit facility provides more financial flexibility for our rapidly growing company,” said Will Matt, CFO. “We are grateful to our lenders who collaborated closely with our team to complete this refinancing.”
Popeyes borrowed $109 million to retire a previous facility, leaving approximately $141 million available to borrow and invest in the company’s growth strategies. The interest rate at closing under the new credit facility is 1.925 percent. In the first quarter of 2016, Popeyes said it expects to defer approximately $1 million of fees associated with the refinancing.
Interest under the new facility is determined using the LIBO Rate plus 150 basis points, the company explained. The spread above the LIBO Rate adjusts from 150 to 250 basis points depending on the company’s total leverage.