Jack in the Box Inc. Announces Refinancing Transaction and Debt Reduction

About this update from Jack In The Box Inc.

Jack in the Box Inc. (NASDAQ: JACK) today announced actions expected to reduce outstanding debt and further optimize its capital structure through the ongoing execution of its “JACK on Track” plan. First, the Company intends to repay $110 million of its existing Series 2019-1 4.476% Fixed Rate Senior Secured Notes, Class A-2-II on June 10, 2026, ahead of the anticipated repayment date of August 2026. The repayment will be funded through a combination of cash on hand and excess funding from company-owned life insurance policy assets. Upon completion, the repayment will bring the Company’s total debt reduction in 2026 to $236.4 million, inclusive of amortization payments, and reduce outstanding securitized debt to approximately $1.5 billion outstanding under the Series 2019-1 Class A-2 Notes and the Series 2022-1 Class A-2 Notes. No borrowings are currently outstanding under the Series 2019-1 Variable Funding Notes, although the facility supports certain outstanding letters of credit. Following this repayment, certain of the Company’s subsidiaries intend to complete a refinancing transaction expected to be comprised of $500 million of senior secured fixed rate notes and $150 million of variable funding notes (collectively, the “Notes”) with proceeds expected to be used to refinance the Series 2019-1 Class A-2 Notes, a portion of the Series 2022-1 Class A-2 Notes, and the Series 2022-1 Variable Funding Notes in full and to pay transaction costs associated with the new securitized financing facility. “Debt reduction remains a priority, and these actions mark another important step in strengthening Jack in the Box’s financial foundation and accelerating our strategic execution,” said Mark King, Executive Chairman and Interim Chief Executive Officer of Jack in the Box Inc. “As we continue to advance our ‘JACK on Track’ initiatives, we are focused on optimizing our capital structure to enhance financial flexibility and deliver sustainable growth.” The consummation of the offering is subject to market and other conditions and is expected to close in the third quarter. However, there can be no assurance that the Company will be able to successfully complete the refinancing 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 offe...

View stock analysis, news, and events for Jack In The Box Inc.