Inspire Brands launches $2.575B term loan repricing

Inspire Brands Inc. is in the market with a proposed repricing of its $2.575 billion term loan B due December 2027, according to sources. Barclays is lead bookrunner on the deal and administrative agent on the loan.

Price talk is for a spread of 300 basis points over the secured overnight financing rate, plus a credit spread adjustment, with a 0.75% floor. The credit spread adjustment is 10 bps for the one-month rate, 15 bps for the three-month rate and 25 bps for the six-month rate. The repriced loan is offered at par with the 101 soft call protection reset for six months.

At talk, the yield to maturity is 3.80%.

Existing pricing on the covenant-lite TLB is L+325, with a 1% Libor floor. It was originally placed in November 2020 as part of the financing for its acquisition of Dunkin' Brands.

Current corporate and facility ratings are B+/B2, with stable outlooks, and there is a 3 recovery rating on the loan from S&P Global Ratings. IRB Holdings Corp. is the borrower.

Inspire Brands, backed by Roark Capital Management, is a restaurant company and franchisor of Arby's, Buffalo Wild Wings, Sonic, Jimmy John's, Dunkin' and Baskin-Robbins.