Restaurant Brands International Inc. Announces Launch of Offering of First Lien Senior Secured Notes

Rhea-AI Summary

Restaurant Brands International Inc. (QSR) has launched a $500 million offering of First Lien Senior Secured Notes due 2029. The funds will be used to redeem $485 million of outstanding 4.25% First Lien Senior Secured Notes due 2024. The Notes will be secured obligations guaranteed by RBI's subsidiaries. The offering will target qualified institutional buyers and will not be registered under the Securities Act. RBI, one of the largest quick-service restaurant companies globally, operates brands like Tim Hortons, Burger King, and Popeyes, boasting around $32 billion in annual system-wide sales.

Positive

• Launch of $500 million First Lien Senior Secured Notes due 2029.
• Use of proceeds to redeem $485 million in higher-interest 2024 First Lien Notes.

Negative

• RBI's substantial indebtedness raises financial risk.
• Economic and industry conditions pose a risk to financial stability.

TORONTO, Oct. 20, 2020 /PRNewswire/ - Restaurant Brands International Inc. ("RBI") (TSX: QSR) (NYSE: QSR) (TSX: QSP), 1011778 B.C. Unlimited Liability Company (the "Issuer") and New Red Finance, Inc. (the "Co-Issuer" and, together with the Issuer, the "Issuers") announced today that the Issuers have launched an offering of $500 million in aggregate principal amount of First Lien Senior Secured Notes due 2029 (the "Notes").

RBI expects to use the proceeds from the offering of the Notes, together with cash on hand, to redeem a portion of the outstanding aggregate principal amount of the Issuers' 4.25% First Lien Senior Secured Notes due 2024 (the "2024 First Lien Notes"), plus any accrued and unpaid interest thereon, and pay related premium, fees and expenses. The Issuers expect to redeem $485 million in aggregate principal amount of 2024 First Lien Notes. This press release does not constitute a notice of redemption.

The Notes will be first lien senior secured obligations of the Issuers, guaranteed on a senior secured basis by each of RBI's subsidiaries that guarantee the Issuers' obligations under the Issuers' existing senior secured credit facilities.

The Notes will be marketed (i) to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") and (ii) outside the U.S. pursuant to Regulation S under the Securities Act. The Notes and the related guarantees have not been and will not be registered under the Securities Act and may not be offered or sold in the U.S. absent registration or an applicable exemption from the registration requirements under the Securities Act and applicable state securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About Restaurant Brands International

Restaurant Brands International Inc. is one of the world's largest quick service restaurant companies with approximately $32 billion in annual system-wide sales and 27,000 restaurants in more than 100 countries and U.S. territories. RBI owns three of the world's most prominent and iconic quick service restaurant brands – TIM HORTONS®, BURGER KING®, and POPEYES®. These independently operated brands have been serving their respective guests, franchisees and communities for over 45 years.

Forward-Looking Statements

This press release includes forward-looking statements, which are often identified by the words "may," "might," "believes," "thinks," "anticipates," "plans," "expects," "intends," or similar expressions and reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements include statements about RBI's and the Issuers' expectations and beliefs regarding the issuance of the Notes and the use of proceeds therefrom. The factors that could cause actual results to differ materially from RBI's expectations are detailed in filings of RBI with the U.S. Securities and Exchange Commission and on SEDAR in Canada, such as its annual and quarterly reports and current reports on Form 8-K, and include the following: risks related to RBI's substantial indebtedness, risks related to adverse economic and industry conditions and risks related to unforeseen events, such as adverse weather conditions, natural disasters, terrorist attacks or threats, pandemics, including coronavirus (COVID-19), or other catastrophic events, all of which could adversely affect its financial condition and prevent it from fulfilling its obligations. RBI undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof.

View original content to download multimedia:http://www.prnewswire.com/news-releases/restaurant-brands-international-inc-announces-launch-of-offering-of-first-lien-senior-secured-notes-301155863.html

SOURCE Restaurant Brands International Inc.

FAQ

What is the recent offering by Restaurant Brands International (QSR)?

RBI has launched a $500 million offering of First Lien Senior Secured Notes due 2029.

How much of the outstanding 2024 First Lien Notes will RBI redeem?

RBI expects to redeem $485 million of the 2024 First Lien Notes.

What will RBI do with the proceeds from the Notes offering?

The proceeds will be used to redeem a portion of the 2024 First Lien Notes and cover related expenses.

What risks are associated with RBI's substantial indebtedness?

RBI's substantial indebtedness creates a risk that could adversely affect its financial condition.

What brands does Restaurant Brands International operate?

RBI operates Tim Hortons, Burger King, and Popeyes.