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Burger King Dividend Recap Hits Mart

27 Jan 2006

Citigroup and JPMorgan are leading a $1.496 billion partial refinancing for Burger King that will also partially fund a dividend payout.

Citigroup and JPMorgan are leading a $1.496 billion partial refinancing for Burger King that will also partially fund a dividend payout. The deal comprises a six-year, $150 million revolving credit facility; a six-year, $246 million "A" term loan; a seven-year, $750 million term loan "B" and a seven-year, $350 million incremental term loan "B." All tranches of the deal are priced at LIBOR plus 1 3/4%. The deal launched last Thursday and commitments are due mid-February.

The deal is a second refinancing for the fast-food company's December 2002 buyout from Diageo by Texas Pacific Group, Bain Capital and Goldman Sachs Capital Partners. The original refinancing, launched in June, has $750 million of the $1.15 billion left outstanding (LMW 6/27). The $350 million incremental term loan "B" is being layered into the existing term loan "B."

Ben Wells, treasurer at Burger King, was not available for comment. Spokesmen at TPG and Bain declined comment. A call to GSCP was not returned.

27 Jan 2006