Bloomin’ Brands Inc. (BLMN:US), the owner of of restaurant chains Outback Steakhouse and Carrabba’s Italian Grill, is seeking to lower borrowing costs on a $975 million loan, the company said in a statement today.
The casual dining operator is proposing to pay interest at 2.5 percentage points to 2.75 percentage points more than the London interbank offered rate with a 1 percent minimum on the lending benchmark, according to a person with knowledge of the matter. The current loan pays 3.5 percentage points more than Libor with a 1.25 percent minimum, Bloomberg data show.
Bloomin’ Brands, based in Tampa, Florida, is offering the loan at par, said the person, who asked not to be identified because the deal is private. The debt will be covenant-light, meaning it will not have financial maintenance requirements.
Deutsche Bank AG and Bank of America Corp. are leading the transaction, which will come due in 2019, according to the statement. The deal will replace a $1 billion credit pact that the company obtained last year. The company repaid $25 million of the loan during the first quarter.
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