Tue Sep 14, 2021 7:25 pm Covenants Analysis  Distressed Debt

Analyzing the Papa John’s secured debt, our Americas Covenants team took a look at the company’s new unsecured notes, leverage-based restricted payments and investment baskets accessible at issuance with 2.5x, 2.75x headroom. After launching $400M of senior unsecured notes due 2029, the company is expecting to repay in full their existing term loan and revolving credit facilities.  Also, with plans to amend their credit facility, Papa John’s secured debt allowance is likely to increase. The amendments to their credit agreement will increase revolving commitments from $400M to $600M and extend the maturity for an additional five-year term.

Click through for our full analysis of the Papa John’s secured debt allowance as well as our discussion on the company’s secured debt capacity, value leakage, quarterly dividends, gross leverage ratios, flexibility under the new notes and more: https://reorg.com/papa-johns-debt-analysis/

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