Dine Brands Completes $925 Million Debt Refinancing Deal

Dine Brands Global Inc., the Pasadena-based parent company of popular restaurant chains Applebee’s, IHOP and Fuzzy’s Taco Shop, announced Tuesday it has completed a major refinancing of its long-term debt.

The company’s two special purpose subsidiaries issued $600 million in fixed-rate senior secured notes, a company statement said. These Class A-2 Notes carry a 6.720% annual interest rate with quarterly payments over an expected five-year term.

The subsidiaries also secured access to an additional $325 million through variable funding senior notes. The statement said this revolving credit facility will allow periodic borrowing and the issuance of letters of credit as needed.

Proceeds from the new financing will pay off existing debt from 2019. As of March 31, the company owed approximately $594 million on its previous fixed-rate notes. The old variable funding facility had $224 million available, with $100 million already borrowed and $1 million pledged for letters of credit.

The new Class A-2 Notes were sold to qualified institutional buyers in the United States and international investors. The securities were not registered under federal securities laws and cannot be publicly traded without proper exemptions.

Dine Brands operates over 3,500 restaurants across 19 international markets through its three main brands. The company ranks among the world’s largest full-service restaurant operators. It expanded into the fast-casual dining segment in 2022.

The refinancing comes as restaurant companies continue managing debt loads while navigating an evolving dining landscape. The new structure provides Dine Brands with financial flexibility for operations and growth initiatives.