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Moody's upgrade for Burger King franchisee

by Taina Rosa  |  Published March 6, 2012 at 9:10 AM
Moody's Investors Service upgraded the ratings of Burger King franchisee Caribbean Restaurants LLC to B3, from Caa2, after the company successfully refinanced its debt, the agency said Monday, March 5.

Standard & Poor's upgraded the company to B-, from CCC, on March 1.

Cataño, Puerto Rico-based Caribbean Restaurants, a portfolio company of Castle Harlan Inc., on Feb. 8 allocated a $217.5 million senior secured financing consisting of a $195 million senior secured term loan due 2017 and a $22.5 million senior secured revolving credit facility due 2016.

Moody's said the upgrade reflects the timeliness of the refinancing, which provides the company with a more manageable debt maturity schedule and improved liquidity.

The ratings agency said it expects the debt to Ebitda will not rise materially above 6.5 times in 2012. Jefferies & Co. arranged the financing. Caribbean Restaurants is the exclusive franchisee of Burger King outlets in Puerto Rico, operating 178 stores. Castle Harlan took control of the company via a 2004 leveraged buyout valued at $340 million.

Calls to the company were not returned.
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Tags: Burger King | Caribbean Restaurants LLC | Castle Harlan Inc. | Ebitda | Jefferies & Co. | Moody's Investors Service | revolving credit facility | senior secured term loan | Standard & Poor's

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