AFC Enterprises, Inc., the franchisor and operator of Popeyes®, today announced the completion of a new five-year $100 million credit facility on December 23, 2010. The new facility is comprised of a $40 million term loan and a $60 million revolver. Proceeds from the refinancing together with available cash were used to retire approximately $63 million of the outstanding principal debt balance of its previous credit facility.
The rate of interest paid under the new facility is currently 2.8 percent and is determined using the LIBO Rate plus a spread of 250 basis points. The spread above the LIBO Rate can adjust from 225 to 325 basis points depending on the Company’s total leverage. In the fourth quarter of 2010, the Company will recognize approximately $0.6 million of interest charges and defer approximately $1.0 million of fees associated with the refinancing.