Overland Park, KS (RestaurantNews.com) NPC International, Inc. (the “Company”) today announced that it has refinanced its outstanding $375 million term loan, availing itself of favorable market conditions and leveraging the Company’s strong close to fiscal 2011. The refinancing resulted in a 125 basis point reduction in the spread over LIBOR on the Company’s term loan borrowings and lowered the term loan LIBOR floor by 25 basis points. At prevailing LIBOR rates this action serves to reduce annual interest expense by approximately $5.6 million. The Company paid a soft call premium, in accordance with the terms of its Credit Agreement, plus transaction related expenses totaling approximately $4.9 million to effectuate the refinancing. No other changes were made to the Company’s senior credit facility in the refinancing.
Jim Schwartz, Chairman and CEO of NPC International, Inc., said, “We are pleased with the results of the term loan refinancing effort as the reduction in interest cost will meaningfully increase our free cash flow, thereby further improving the Company’s already strong deleveraging profile.”
Barclays and Goldman Sachs Bank USA served as joint lead arrangers and joint bookrunners for the transaction.
NPC International, Inc. is the world’s largest Pizza Hut franchisee and currently operates 1,187 Pizza Hut restaurants and delivery units in 28 states.
Cautionary Statement Regarding Forward-Looking Information
Certain statements contained in this news release that do not relate to historical or current facts constitute forward-looking statements. These include statements regarding our plans and expectations. Forward-looking statements are subject to inherent risks and uncertainties and there can be no assurance that such statements will prove to be correct. NPC’s actual results may vary materially from those anticipated in such forward-looking statements as a result of a number of factors, including adverse changes in credit markets, lower than anticipated consumer discretionary spending; deterioration in general economic conditions; competition in the quick service restaurant market; adverse changes in food, labor and other costs; price inflation or deflation; adverse changes in the credit markets; and other factors. These risks and other risks are described in NPC’s filings with the Securities and Exchange Commission made prior to its termination of voluntary reporting with the SEC in 2012, including NPC’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Copies of these filings may be obtained by contacting NPC. All forward-looking statements made in this news release are made as of the date hereof. NPC does not intend to update these forward-looking statements and undertakes no duty to any person to provide any such update under any circumstances. Investors are cautioned not to place undue reliance on any forward-looking statements.
This press release is for informational purposes only and shall not constitute an offer to buy or sell or a solicitation of an offer to buy or sell any securities.