Wall Street lenders, led by Jefferies and UBS, have launched pre-marketing efforts for over $1bn in debt to support Bain Capital’s acquisition of Sizzling Platter, a major multi-brand restaurant franchisee, according to a report by Bloomberg citing sources familiar with the transaction.
The financing structure comprises a $505m term loan and $400m in secured notes. In addition, lenders are preparing a $150m first lien delayed draw term loan facility and a $175m revolving credit facility.
Sizzling Platter operates a diversified portfolio of franchise units, including Little Caesars, Dunkin’, Jersey Mike’s, and Wingstop. Bain Capital agreed to acquire the business earlier this year, with the private equity sponsor committing approximately $480m in equity to the transaction.
Price talk for the debt package is said to be in the range of 425 to 450 basis points over the benchmark rate for the term loan, while the secured notes are expected to price with yields in the mid-8% range.
According to sources, Sizzling Platter generated approximately $165m in adjusted EBITDA for the 12-month period ending in Q1, implying total net leverage of around 5.3x under the proposed capital structure.
