Pricing on the $750 million "B" loan for Burger King Corp. was flexed down to LIBOR plus 1 3/4% with a step down to LIBOR plus 1 1/2% if leverage goes below 2.5 times. JPMorgan and Citigroup are leading the deal that launched in late June. The facility also consists of a $150 million revolver and a $250 million term loan "A." Pricing on the revolver and "A" is LIBOR plus 1 3/4%.
Burger King was bought by Texas Pacific Group, Bain Capital and Goldman Sachs Capital Partners from Diageo after a protracted auction. In order to make sure the deal was completed, Diageo guaranteed $750 million of five-year loans and $425 million of 10-year subordinated debt. Reportedly, this debt had to be refinanced by December 2005 or Diageo would collect a 5% fee on the outstanding amount. A call to Ben Wells, treasurer, was not returned.