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Subsequent Events
9 Months Ended
Sep. 30, 2014
Subsequent Events [Abstract]  
Subsequent Events
Subsequent Events

On September 30, 2014, subsequent to the last day of the Company's fiscal third quarter, the Company issued and sold in a privately placed securitization transaction $1.3 billion of Series 2014-1, Class A-2 Fixed Rate Senior Secured Notes (the “Notes”). The Notes were issued by two indirect, special purpose subsidiaries of the Company (the “Co-Issuers”). The Notes will bear interest at a rate of 4.277% per annum, payable quarterly, and will have an expected term of seven years. The Co-Issuers and their subsidiaries will own substantially all of the Applebee’s and IHOP domestic franchising, rental and financing assets and will use cash flows generated from these assets to make interest and principal payments on the Notes. The Co-Issuers also entered into a purchase agreement for the issuance of up to $100 million Series 2014-1 Variable Funding Senior Notes, Class A-1 (the “VFN”), which will allow the Co-Issuers to borrow amounts from time to time on a revolving basis and issue letters of credit.
The Company used the proceeds from the sale of the Notes to repay the entire outstanding balance of $463.6 million of the Senior Secured Credit Facility. Approximately $833 million was placed in escrow to repay the $760.8 million principal amount of 9.5% Senior Notes outstanding, approximately $36 million of accrued interest and a make-whole premium required for early repayment of the Senior Notes of $36 million. The Senior Notes will not be removed from the Company's balance sheet until they are repaid on or about October 30, 2014. The remaining proceeds will be used for transaction costs associated with the refinancing and general corporate purposes.
As the extinguished debt was repaid by incurring another long-term obligation, the extinguished debt was not classified as current pursuant to Accounting Standards Codification 210-10-45-12.
On October 27, 2014, the Company's Board of Directors approved the payment of a cash dividend of $0.875 per share of our common stock, payable at the close of business on January 9, 2015 to the stockholders of record as of the close of business December 3, 2014.
On October 27, 2014, the Company's Board of Directors also approved increasing our share repurchase authorization back to the previous level of $100 million. In February 2013 the Board of Directors had approved a $100 million share repurchase authorization pursuant to which we had repurchased $59.7 million of our common stock prior to the approval of the new authorization.