CANTON, Mass., Feb. 18, 2011 /PRNewswire/ -- Dunkin' Brands, Inc., the parent company of two of the world's most recognized brands, Dunkin' Donuts and Baskin-Robbins, today announced it has completed the re-pricing of its term loan. In addition, the Company has increased the size of its term loan from $1.25 billion to $1.4 billion. The total debt of the Company will remain unchanged as the incremental proceeds of $150 million will be used to repay an equal amount of the Company's senior notes. The new interest rate on the term loan is LIBOR plus 3.00% with a LIBOR floor of 1.25%. The previous interest rate was LIBOR plus 4.25% with a LIBOR floor of 1.50%. The re-pricing and reallocation of debt will save the Company approximately $26 million in interest expense annually.
"The strong credit market and high demand for Dunkin' Brands' term loans have enabled us to lower our weighted average cost of debt, further improve our capital structure and better position ourselves to take advantage of our global growth opportunities," said Neil Moses, Dunkin' Brands Chief Financial Officer.
The maturity date for the term loan remains November 23, 2017.
About Dunkin' Brands, Inc.
With 16,193 points of distribution in 52 countries worldwide, Dunkin' Brands, Inc. is renowned for its leadership in the quick quality category. At the end of 2010, Dunkin' Brands' nearly 100 percent franchised business model included 9,760 Dunkin' Donuts restaurants and 6,433 Baskin-Robbins restaurants, and the Company had system-wide sales of approximately $7.7 billion. Dunkin' Brands, Inc. is headquartered in Canton, Mass. For more information, visit www.dunkinbrands.com.
Certain statements in this press release are forward-looking statements. These statements involve a number of risks, uncertainties, and other factors including the failure to achieve financial results within the estimated ranges set forth above and the failure to consummate the proposed term loan re-pricing as well as potential changes in market conditions that could cause actual results to differ materially.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities.
SOURCE Dunkin' Brands, Inc.