Popeyes Louisiana Kitchen Inc., the franchisor and operator of Popeyes restaurants, announced the completion of a new, five-year $250 million revolving credit facility on Jan. 22. At closing, the stated interest under the new facility is determined using the LIBO Rate plus 150 basis points. The spread above the LIBO Rate adjusts from 150 to 250 basis points depending on the Company's total leverage.
Pursuant to the refinancing, the Company borrowed $109 million to retire its 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%. In the first quarter of 2016, the Company expects to defer approximately $1,000,000 of fees associated with the refinancing.
"This new five-year credit facility provides more financial flexibility for our rapidly growing company. We are grateful to our lenders who collaborated closely with our team to complete this refinancing," said Will Matt, Popeyes Louisiana Kitchen, Inc., chief executive officer.