Jack in the Box Enters $500M Note Purchase Agreement
Jack in the Box entered into a purchase agreement under which one of its indirect, special purpose subsidiaries has agreed to issue and sell $500M of its Series 2026-1 7.624% Fixed Rate Senior Secured Notes, Class A-2. Interest payments on the 2026 Notes are payable on a quarterly basis. The anticipated repayment dates of the 2026 Notes will be May 2031, unless earlier prepaid to the extent permitted under the indenture that will govern the 2026 Notes. The 2026 Notes are expected to be issued by the Master Issuer in a privately placed securitization transaction. The net proceeds of the expected sale of the 2026 Notes are expected to be used to repay in full the Company's existing Series 2019-1 4.476% Fixed Rate Senior Secured Notes, Class A-2-II and repay a portion of the Series 2022-1 3.445% Fixed Rate Senior Secured Notes, Class A-2-I. The Master Issuer also intends to enter into a new purchase agreement under which it will issue $150M of its Series 2026-1 Variable Funding Senior Secured Notes, Class A-1, which will allow the Master Issuer to borrow amounts from time to time on a revolving basis. The Class A-1 Notes will replace the Company's existing $150M Series 2022-1 Variable Funding Senior Secured Notes, Class A-1. The closing of the sale of the 2026 Notes is expected to occur in June, subject to satisfaction of various closing conditions. However, there can be no assurance regarding the timing of the closing or that the sale of the 2026 Notes will be completed.
