- The company amends its existing senior credit facility, boosting it to $1.6B - a $700M term loan and $900M revolver. A total of $700M is outstanding on the term loan and $307.5M on the revolver.
- The maturity date remains March 2019, and the interest rate will range from Libor plus 1.25% to Libor plus 2.25%. The rate is currently Libor plus 2%.
- The amendment also boosts the maximum leverage ratio to 4x from 3.5x, and allows unlimited cash dividends and buybacks if it stays at 3.5x or less (vs. 3x previously).
- Alongside, NASDAQ:JACK's buyback authorization is boosted by $300M. As of the end of FQ3, the company had $150M remaining under the previous mandate.