Restaurant Brands Intl Acquires Carrols Restaurant for $1B

Restaurant Brands International (RBI) has successfully completed the acquisition of Carrols Restaurant Group Inc. for approximately $1.0 billion. With this acquisition, RBI adds the largest Burger King (BK) franchisee in the United States to its portfolio. The company also plans to invest an additional $500 million to accelerate the reimaging of over 600 Carrols restaurants before refranchising the majority of the acquired portfolio to new or existing smaller franchise operators over the next seven years.

To fund this acquisition, subsidiaries of RBI entered into an amendment to their existing credit agreement, increasing the existing term loan b facility from $5.2 billion to $5.9 billion. The proceeds from the increase in the term loan b facility, along with cash on hand, were used to complete the acquisition of Carrols, including the payoff of its credit agreement and the redemption and discharge of its outstanding 5.875% senior notes due 2029.

Carrols Restaurant Group, which is one of the largest restaurant franchisees in North America, operates 1,023 Burger King restaurants in 23 states as well as 59 Popeyes restaurants in six states. Carrols has been operating Burger King restaurants since 1976 and Popeyes restaurants since 2019.

This acquisition is part of RBI's "Reclaim the Flame" plan, and the company's financial position has been significantly impacted by the increase in the term loan b facility and the use of cash on hand to fund the acquisition. As a result of these announcements, the company's shares have moved 0.0% on the market, and are now trading at a price of $9.54. For more information, read the company's full 8-K submission here.

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