Benzinga | Jun 9, 2021 07:33AM EDT

Wendy's Announces Certain Subsidiaries To Refinance A Portion Of Outstanding Securitization Debt

The Wendy's Company (NASDAQ:WEN) (the "Company") today announced that certain of its subsidiaries commenced a refinancing transaction, which will consist of the refinancing of a portion of their outstanding securitization debt with a new series of securitized notes under the existing securitized financing facility.

* The Company's outstanding securitization debt is currently comprised of the following tranches: Series 2020-1 variable funding senior secured notes due June 2023, Class A-1, which allows for the drawing of up to $100 million using various credit instruments (the "Series 2020-1 Class A-1 Notes"); Series 2019-1 variable funding senior secured notes due September 2024, Class A-1, which allows for the drawing of up to $150 million using various credit instruments, including a letter of credit facility (the "Series 2019-1 Class A-1 Notes"); Series 2019-1 3.783% fixed rate senior secured notes due September 2026, Class A-2-I, with an initial principal amount of $400 million; Series 2019-1 4.080% fixed rate senior secured notes due September 2029, Class A-2-II, with an initial principal amount of $450 million; Series 2018-1 3.884% fixed rate senior secured notes due March 2028, Class A-2-II, with an initial principal amount of $475 million; Series 2018-1 3.573% fixed rate senior secured notes due March 2025, Class A-2-I, with an initial principal amount of $450 million (the "Series 2018-1 Class A-2-I Notes"); and Series 2015-1 4.497% fixed rate senior secured notes due June 2025, Class A-2-III, with an initial principal amount of $500 million (the "Series 2015-1 Class A-2-III Notes").

* The Company's subsidiaries intend to issue at least $900 million of new fixed rate senior secured notes (the "Series 2021-1 Class A-2 Notes") and plan to use the gross proceeds from the sale of the Series 2021-1 Class A-2 Notes, in addition to cash on the balance sheet, for the repayment of the Series 2015-1 Class A-2-III Notes and the Series 2018-1 Class A-2-I Notes, and to pay related transaction fees and prepayment costs. Any remaining funds, if applicable, will be used for general corporate purposes, which may include funding for growth initiatives, return of capital to shareholders, or additional debt retirement. As of April 4, 2021, the principal balance of the Series 2015-1 Class A-2-III Notes outstanding was approximately $473 million and the principal balance of the Series 2018-1 Class A-2-I Notes outstanding was approximately $435 million.

* The Company's subsidiaries also intend to enter into a new Series 2021-1 variable funding senior secured note facility due September 2026, which allows for the drawing of up to $300 million using various credit instruments, including a letter of credit facility. This facility will replace the Series 2019-1 Class A-1 Notes and the Series 2020-1 Class A-1 Notes.

The consummation of the offering is subject to market and other conditions and is anticipated to close by the end of the second quarter of 2021. There can be no assurance regarding the timing of the refinancing transaction or that the Company's subsidiaries will be able to complete the refinancing transaction on the terms described or at all.