CANTON, Mass., Jan. 26, 2015 /PRNewswire/ -- Dunkin' Brands
Group, Inc. (Nasdaq: DNKN), the parent company of Dunkin' Donuts
(DD) and Baskin-Robbins (BR), announced today that it has completed
its refinancing as planned, with the placement by its special
purpose subsidiary (the "Master Issuer") of a $2.6 billion securitized debt facility. The new
securitized debt facility replaces the Company's $1.9 billion senior secured credit facility.
The securitized debt facility includes $2.5 billion Class A-2 Senior Secured Notes
("Notes"), which consist of two tranches with anticipated repayment
dates of four years ($750 million)
and seven years ($1.75 billion),
respectively. The Notes will bear interest at a rate of 3.262
percent per annum for the four year tranche and 3.980 percent per
annum for the seven year tranche, resulting in a weighted-average
effective interest rate of 3.765 percent per annum, payable
quarterly. As a result, the Company expects its 2015 annual
interest expense to be approximately $96.5
million.
The Master Issuer also entered into a purchase agreement for the
issuance of up to $100 million of
Series 2015-1 Variable Funding Senior Notes, Class A-1 (the "VFN"),
which will allow the Master Issuer to borrow amounts from
time-to-time on a revolving basis and issue letters of credit.
"We are very pleased to complete the refinancing of our debt at
what we believe is an attractive rate for the new securitized debt
structure, which provides us with the stability of fixed rate
interest over the next several years. We plan to use the net
proceeds, after the repayment of our senior secured credit facility
and the payment of fees and expenses associated with the
transaction, of approximately $615
million, for general corporate purposes, including to return
capital to shareholders through future share repurchases," said
Nigel Travis, Chairman and CEO,
Dunkin' Brands Group, Inc.
"The new debt structure leverages our business model's ability
to generate strong cash flow and increases our financial
flexibility. We are adjusting our adjusted earnings per share
guidance that we provided on December 18,
2014, for the anticipated impact of this transaction and the
expected use of proceeds on interest expense and shares
outstanding. This results in amended guidance from $1.88 to $1.91 to $1.83 to
$1.87," said Paul Carbone,
Chief Financial Officer, Dunkin' Brands Group, Inc.
The Master Issuer and its subsidiaries hold or have the right to
receive payments on substantially all of the Company's
revenue-generating assets and will use cash flows generated from
these assets to make interest and principal payments on the
Notes.
The Company also announced today that its Board of Directors
authorized a new share repurchase program for up to an aggregate of
$700 million of its outstanding
common stock. The authorization is valid for a period of two
years.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy the Notes or any other security.
The Notes have not been, and will not be, registered under the
Securities Act of 1933, as amended (the "Securities Act"), or any
state securities laws, and may not be offered or sold in
the United States absent
registration or an applicable exemption from the registration
requirements of the Securities Act and applicable state securities
laws.
Conference Call
Dunkin' Brands will be holding a conference call on Wednesday, January 28, 2015, at 10:00 am ET to discuss this announcement.
Paul Carbone, Chief Financial
Officer, will host the call. The dial-in number is (866) 393-1607
or (914) 495-8556, conference number 74201193. Dunkin' Brands
will broadcast the conference call live over the Internet at
http://investor.dunkinbrands.com. A replay of the conference call
will be available on the Company's website at
http://investor.dunkinbrands.com.
Forward-Looking Statements
This news release contains projections and other forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
Generally, these statements can be identified by the use of words
such as "anticipate," "believe," "could," "estimate," "expect,"
"feel," "forecast," "intend," "may," "plan," "potential,"
"project," "should," "would," and similar expressions intended to
identify forward-looking statements, although not all
forward-looking statements contain these identifying words. By
their nature, forward-looking statements involve risks and
uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future. These
projections and statements reflect management's current views with
respect to future events and financial performance. No assurances
can be given, however, that these events will occur or that these
projections will be achieved, and actual results could differ
materially from those projected as a result of certain risk
factors. A discussion of these risk factors is included in the
Company's periodic reports filed with the Securities and Exchange
Commission. Except as required by applicable law, we do not
undertake to publicly update or revise any of these forward-looking
statements, whether as a result of new information, future events
or otherwise.
About Dunkin' Brands Group, Inc.
With more than 18,800
points of distribution in nearly 60 countries worldwide, Dunkin'
Brands Group, Inc. (Nasdaq: DNKN) is one of the world's leading
franchisors of quick service restaurants (QSR) serving hot and cold
coffee and baked goods, as well as hard-serve ice cream. At the end
of fiscal 2014, Dunkin' Brands' nearly 100 percent franchised
business model included more than 11,300 Dunkin' Donuts restaurants
and more than 7,500 Baskin-Robbins restaurants. Dunkin' Brands
Group, Inc. is headquartered in Canton,
Mass.
Logo -
http://photos.prnewswire.com/prnh/20120516/NE07970LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/dunkin-brands-completes-26-billion-securitization-refinancing-300025656.html
SOURCE Dunkin' Brands Group, Inc.