Restaurant Brands International Inc. Announces Launch of Offering of Second Lien Senior Secured Notes
On September 16, 2020, Restaurant Brands International (RBI) announced a $1 billion offering of Second Lien Senior Secured Notes due 2030. The proceeds will be used to redeem a portion of the existing 5% Second Lien Senior Secured Notes due 2025, along with accrued interest, premiums, and fees. The Notes will be guaranteed by RBI's subsidiaries and marketed to qualified institutional buyers under U.S. regulations. RBI is one of the largest quick-service restaurant companies globally, with over $32 billion in annual sales and iconic brands like TIM HORTONS®, BURGER KING®, and POPEYES®.
- Launch of $1 billion in Second Lien Senior Secured Notes, indicating investment in financial strategies.
- Proceeds aimed at redeeming higher-interest debt, potentially reducing overall interest expenses.
- Company's significant indebtedness remains a concern amidst the new offering.
- Potential vulnerability to adverse economic conditions and unforeseen events affecting financial stability.
TORONTO, Sept. 16, 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
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'
The Notes will be second 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
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.
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SOURCE Restaurant Brands International Inc.
FAQ
What is the purpose of the $1 billion Notes offering by QSR?
When are the Second Lien Senior Secured Notes due for QSR?
What is the current debt situation for QSR?
Who will guarantee the new Notes issued by QSR?
