Jack in the Box Inc. Announces Financing Transaction

Jack in the Box
Published: January 27th, 2022

SAN DIEGO - (BUSINESS WIRE) - January 26, 2022 - Jack in the Box Inc. (NASDAQ: JACK) today announced that certain of its subsidiaries intend to complete a financing transaction, which will consist of refinancing a portion of the Company’s outstanding securitization debt with the issuance of a new series of securitized notes under the Company’s existing securitized financing facility. The Company also expects these subsidiaries to enter into a new variable funding note facility.

The Company’s outstanding securitization debt is currently comprised of the following tranches:

• Series 2019-1 Variable Funding Senior Secured Notes, which allow for the drawing of up to $150 million using various credit instruments (the “Series 2019-1 Variable Funding Notes”);
• Series 2019-1 3.982% Fixed Rate Senior Secured Notes, Class A-2-I, with an initial principal amount of $575,000,000 (the “Series 2019-1 Class A-2-I Notes”);
• Series 2019-1 4.476% Fixed Rate Senior Secured Notes, Class A-2-II, with an initial principal amount of $275,000,000 (the “Series 2019-1 Class A-2-II Notes”); and
• Series 2019-1 4.970% Fixed Rate Senior Secured Notes, Class A-2-III, with an initial principal amount of $450,000,000 (the “Series 2019-1 Class A-2-III Notes”, and together with the Series 2019-1 Class A-2-I Notes and the Series 2019-1 Class A-2-II Notes, the “Series 2019-1 Class A-2 Notes”).

As of October 3, 2021, $1.29 billion was outstanding under the Series 2019-1 Class A-2 Notes, and no borrowings were outstanding under the Series 2019-1 Variable Funding Notes

The Company intends to refinance a portion of the Series 2019-1 Class A-2 Notes and the Series 2019-1 Variable Funding Notes with a new $1.25 billion securitized financing facility, expected to be comprised of $1.1 billion of senior secured fixed rate notes (the “2022 Notes”) and $150.0 million of variable funding notes (collectively, the “Notes”).

The net proceeds of the securitized financing facility are expected to be used:

• To repay in full the Series 2019-1 Class A-2-I Notes; and
• To distribute to Jack in the Box SPV Guarantor, LLC and thereafter to the Company to fund a portion of the Company’s acquisition of Del Taco Restaurants, Inc. (“the Del Taco Acquisition”).

In connection with the Del Taco Acquisition, the Company does not currently expect to increase its net funded debt level as a result of any borrowings outside of the securitized financing facility.

The consummation of the offering is subject to market and other conditions and is anticipated to close in February 2022. However, there can be no assurance that the Company will be able to successfully complete the financing transaction on the terms described or at all.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes or any other security. The Notes to be offered have not been, and will not be, registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933.

SOURCE Jack in the Box Inc.