Burger King Parent Announces Financing Pricing; Brazil Operator to Acquire Starbucks

Restaurant Brands International (RBI), the parent company of Burger King, has priced a $1.2 billion notes offering, while its Brazilian operator, Zamp, has agreed to acquire Starbucks Brazil's assets for BRL 120 million.

Restaurant Brands International Prices $1.2B Notes Offering to Refinance Debt and Reduce Interest Costs

According to Seeking Alpha, The Issuers of Restaurant Brands International (NYSE: QSR) have priced an offering of $1.2B in aggregate principal amount of 6.125% First Lien Senior Secured Notes due 2029, representing a $200 million increase from the previously announced offering size.

The Notes' offering is anticipated to conclude on or around June 17.

RBI (QSR) anticipates that the net proceeds from the Notes offering will be utilized to refinance a portion of the Issuers' existing term loan B facility, due in September 2030, and cover related fees and expenses for general corporate purposes.

The Issuers' senior secured obligations will be the Notes, the first lien.

Restaurant Brands (QSR) has also disclosed that it will be repricing and downsizing its Term Loan B Facility from $5,912 million at Adjusted Term SOFR Rate plus 2.25% to $4,750 million at Adjusted Term SOFR Rate plus 1.75%. This decision is contingent upon the anticipated utilization of the net proceeds from the Notes offering.

Restaurant Brands (QSR) anticipates these transactions will generate annualized net interest savings and be approximately neutral to net leverage.

Zamp to Acquire Starbucks Brazil Assets for BRL 120 Million Amid SouthRock's Bankruptcy

Zamp, the Brazilian company that operates Burger King and Popeyes, has agreed to acquire Starbucks Brazil's assets from SouthRock for BRL 120 million (USD 22.7 million).

Subway Brazil, another SouthRock trademark, filed for bankruptcy protection in March due to debts exceeding BRL 482 million, per

SouthRock also filed for bankruptcy protection in November of last year, as it could not repay BRL 1.8 billion in debt due to losing the rights to the Starbucks brand. In February, SouthRock successfully exempted the Eataly restaurant and retail group, another of its international trademarks, from the bankruptcy proceedings and sold it to a fund for BRL 15 million.

The assets and rights currently part of Starbucks' operations in Brazil are included in Zamp's offer. These assets would be associated with a new company established in partnership with SouthRock. The transaction would be conducted through a closed proposal competition within the bankruptcy process, as the brand is currently undergoing judicial reorganization. The agreement grants Zamp precedence in the bidding process, enabling them to match offers and receive compensation if they do not win.

The deal's conclusion is contingent upon the approval of the Brazilian antitrust authority, Cade, Starbucks' endorsement in the United States, and court approval.