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NEW YORK, Sept 11 (Reuters) - Burger King Worldwide Inc is lining up a $7.25 billion loan package to finance its $11.5 billion acquisition of Canadian quick service restaurant chain Tim Hortons, sources told Thomson Reuters LPC.
JP Morgan is leading the financing. Lenders are scheduled to meet September 15 in New York.
The loan package includes a $6.75 billion, seven-year term loan B and a $500 million, five-year revolver. Price guidance is being circulated at LIB+350 with a 1 percent Libor floor and an original issue discount (OID) in the 99-99.5 range. The term loan will include six months of soft call protection at 101.
Burger King announced on August 26 that it was buying Tim Hortons. The company said at the time it had $12.5 billion of financing commitments.
The commitments included a $9.5 billion package from JP Morgan and Wells Fargo and $3 billion of preferred equity financing from Berkshire Hathaway, which will not be involved in the management of the company.
In addition to the loan package, Burger King said it plans to sell $2.25 billion of second-lien secured notes to back the deal.
Burger King is backed by private equity firm 3G Capital, which owns approximately 70 percent of the restaurant chain. The firm will own 51 percent of the combined company. (Editing By Jon Methven)