CKE Restaurants, Inc. Enters Into Interest Rate Swap Agreements
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CKE Restaurants, Inc. Enters Into Interest Rate Swap Agreements

CARPINTERIA, Calif., Sept. 10 // PRNewswire-FirstCall // -- CKE Restaurants, Inc. (NYSE: CKR) announced today that it has entered into fixed interest rate swap agreements with various counterparties, the impact of which will effectively fix future interest payments on $200 million of the Company's current $270 million floating rate term loan debt obligations. Under the agreements, which are effective today and expire on March 12, 2012, the Company agreed to make payments on $200 million at a fixed interest rate of 4.8409 in return for payments on the same notional amount at a variable rate based on the London Interbank Offer Rate (LIBOR). The counterparties to the agreements are Union Bank of California, BNP Paribas, Rabobank and JP Morgan.

The Company pays interest on its term loan debt based on the sum of the applicable LIBOR index plus 1.375 percent. Accordingly, as a result of the fixed interest rate swap agreements, the interest rate on $200 million of the Company's term loan debt will effectively be fixed at 6.2159 percent. The remaining balance of the Company's term loan will continue to bear interest based on variable LIBOR rates which are reset from time to time. As of September 4, 2007, the thirty day LIBOR rate for the Company's term loan was 5.688 percent.

Ted Abajian, executive vice president and chief financial officer, commented, "Since we currently have a $270 million term loan outstanding, which bears interest at LIBOR based floating rates, these agreements will limit future interest rate exposure on a significant portion of our debt and offer greater stability as we continue to implement our capital plan."

As of the end of its fiscal 2008 first quarter ended May 21, 2007, CKE Restaurants, Inc., through its subsidiaries, had a total of 3,022 franchised, licensed or company-operated restaurants in 43 states and in 13 countries, including 1,101 Carl's Jr. restaurants and 1,905 Hardee's restaurants.

SAFE HARBOR DISCLOSURE

Matters discussed in this news release contain forward-looking statements relating to future plans and developments, financial goals and operating performance that are based on management's current beliefs and assumptions. Such statements are subject to risks and uncertainties that are often difficult to predict, are beyond the Company's control and which may cause results to differ materially from expectations. Factors that could cause the Company's results to differ materially from those described include, but are not limited to, whether or not restaurants will be closed and the number of restaurant closures, consumers' concerns or adverse publicity regarding the Company's products, the effectiveness of operating initiatives and advertising and promotional efforts (particularly at the Hardee's brand), changes in economic conditions or prevailing interest rates, changes in the price or availability of commodities, availability and cost of energy, workers' compensation and general liability premiums and claims experience, changes in the Company's suppliers' ability to provide quality and timely products to the Company, delays in opening new restaurants or completing remodels, severe weather conditions, the operational and financial success of the Company's franchisees, franchisees' willingness to participate in the Company's strategies, the availability of financing for the Company and its franchisees, unfavorable outcomes in litigation, changes in accounting policies and practices, effectiveness of internal controls over financial reporting, new legislation or government regulation (including environmental laws), the availability of suitable locations and terms for the sites designated for development, and other factors as discussed in the Company's filings with the Securities and Exchange Commission.

Forward-looking statements speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law or the rules of the New York Stock Exchange.

SOURCE CKE Restaurants, Inc.

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