PASADENA, Calif., June 18, 2025 — Dine Brands Global, Inc. (NYSE: DIN) (the “Corporation”), the parent company of Applebee’s Neighborhood Grill + Bar®, IHOP® restaurants and Fuzzy’s Taco Shop®, today announced that the Corporation’s indirect, two special purpose subsidiaries (the “Co-Issuers”) have completed the refinancing of their fixed rate senior secured notes and variable funding senior notes. The financing facility is comprised of Series 2025-1 Class A-2, Fixed Rate Senior Secured Notes, (“Class A-2 Notes”) in an initial principal amount of $600 million. The Class A-2 Notes bear interest at a fixed coupon rate of 6.720% per annum, payable quarterly, and have an expected term of five years.
The Co-Issuers also entered into a purchase agreement for the issuance of up to $325 million of Series 2025-1, Class A-1 Variable Funding Senior Notes (the “VFN”), which will allow the Co-Issuers to borrow amounts periodically on a revolving basis and issue letters of credit. The applicable interest rate will depend on the type of borrowing.
The net proceeds of the new facility will be used to repay any outstanding amounts under the Corporation’s existing Series 2019-1 Class A-2-II, Fixed Rate Senior Secured Notes, for transaction costs associated with the refinancing and general corporate purposes.
As of March 31, 2025, the balance of the Series 2019-1 Class A-2-II, Fixed Rate Senior Secured Notes was approximately $594 million and the remaining availability of the Series 2022-1 Class A-1, Variable Funding Senior Notes (which have a maximum outstanding principal amount of $325 million) was $224 million, with $100 million used for outstanding loan borrowings and an additional $1 million pledged against the Series 2022-1 Class A-1, Variable Funding Senior Notes for outstanding letters of credit.
The Class A-2 Notes were sold to qualified institutional buyers in the United States in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to persons outside the United States in accordance with Regulation S under the Securities Act. The Class A-2 Notes have not been, and will not be, registered under the Securities Act or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable securities laws of any state or other jurisdiction. The Class A-2 Notes, together with the VFN, herein referred to as the “New Notes”. This press release does not constitute an offer to sell or the solicitation of an offer to buy the New Notes or any other security, nor shall there be any offer, solicitation or sale of the New Notes or any other security in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful.
Be the first to comment