Caribbean Restaurants Sets Rate On $190 Million Term Loan

BusinessWeek:

Caribbean Restaurants Inc, the franchisee of Burger King restaurants in Puerto Rico, set the interest rate it will pay on a $190 million term loan it’s seeking to refinance debt, according to a person with knowledge of the transaction.

The five-year debt will pay 8 percentage points more than the London interbank offered rate, said the person, who declined to be identified because the terms are private. Libor, the rate banks say they can borrow in dollars from each other, will have a 1.5 percent floor.

Caribbean Restaurants is proposing to sell the loan at 97 cents on the dollar, the person said, reducing proceeds for the company and boosting the yield to investors.