UPDATE 1-TRLPC: Burger King markets $7.25B loan package for Tim Hortons buy

Thu Sep 11, 2014 3:56pm EDT
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By Jonathan Schwarzberg

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.

The loan package, which includes a $6.75 billion, seven-year term loan B and a $500 million, five-year revolver, will launch to investors on Monday, well ahead of the likely closing of the acquisition.

Burger King is backed by private equity firm 3G Capital, which is its majority shareholder owning 70 percent of the restaurant chain.

Conglomerate Berkshire Hathaway is also providing $3 billion of preferred equity financing for the transaction.

The way this deal is being done is starting to bear some resemblance to another transaction that 3G Capital was involved in last year.

3G partnered up with Berkshire Hathaway to purchase H.J. Heinz Co for about $23 billion in a deal that also saw Berkshire contributing preferred equity.

The Heinz deal was announced on February 14. The loan package backing the transaction was offered to investors on March 13. The acquisition finally closed in June.   Continued...