NEW YORK – Dunkin’ Brands Group Inc., the owner of Dunkin’ Donuts and Baskin-Robins restaurants, is seeking to refinance $1.93 billion of loans, according to a person with knowledge of the transaction.
JPMorgan Chase & Co. is leading the deal and hosted a lender call at 2 p.m. in New York, said the person, who asked not to be identified without authorization to speak publicly.
The Canton, Mass.-based company is offering to pay interest at 2.25 percentage points to 2.5 percentage points more than the London interbank offered rate with a 0.75 percent minimum on a $1.83 billion term piece, down from 2.75 percentage points with a 1 percent floor it currently pays, the person said. The seven-year debt will be offered to lenders at 99.75 cents to 100 cents on the dollar.
Lenders are offered 101 soft-call protection for six months, meaning that Dunkin’ would have to pay a one-cent premium to reprice the loan in its first six months, the person said.
The deal also includes a $100 million, five-year revolving line of credit, according to the person.
The current $1.83 billion loan fell to 100.63 cents on the dollar today from 100.69 cents yesterday, according to prices compiled by Bloomberg.
Dunkin’ had been majority owned by investment funds affiliated with Bain Capital Partners LLC, Carlyle Group and Thomas H. Lee Partners LP since a 2006 leveraged buyout. The sponsors began selling out of their positions in 2012 and completely exited by Sept. 28, 2013, according to a Nov. 6 regulatory filing.
In a revolving line of credit, money may be borrowed again once it’s repaid; in a term loan it can’t.