Whataburger Returns to Loan Market With $2.7 Billion Deal
- Company will reprice loan, buy back preferred equity
- Borrowers have stormed loan market for repricings lately
Texas burger chain Whataburger is returning to the debt market to cut borrowing costs on its existing leveraged loan and redeem the remaining preferred equity on its balance sheet, finishing a transaction it started earlier this year.
The restaurant chain, known for its white and orange restaurants and hefty burgers, launched a $2.73 billion leveraged loan offering, according to people familiar with the matter. It will use $2.59 billion of that amount to reprice its existing existing obligation to 275 to 300 basis points over the Secured Overnight Financing Rate while keeping the price at par, based on initial discussions, the people said, asking not to be identified because the information is private.