Oct. 30 (Bloomberg) -- ARG IH Corp., a franchiser and operator of quick-service restaurants, set the rate on a $335 million term loan it’s seeking for Arby’s Restaurant Group Inc. to fund a shareholder dividend, according to a person with knowledge of the transaction.
The seven-year debt may pay interest at 4.25 percentage points more than the London interbank offered rate, with a 1 percent minimum on the lending benchmark, said the person, who asked not to be identified because terms are private.
Arby’s, based in Atlanta, was sold to a buyer formed by Roark Capital Group Inc. in 2011, according to a statement distributed by Business Wire at the time. Wendy’s/Arby’s Group retained an 18.5 percent ownership interest in the Arby’s business.
The transaction includes a $35 million revolver that comes due in five years, the person said.
Credit Suisse Group AG is arranging the financing, which is being offered to lenders at 99 cents on the dollar, the person said. Investors have to submit commitments to the bank on Nov. 13.
In a revolving line of credit, money may be borrowed again once it’s repaid; in a term loan it can’t.
To contact the reporter on this story: Krista Giovacco in New York at firstname.lastname@example.org.
To contact the editor responsible for this story: Faris Khan at email@example.com.