Irth Capital’s proposed acquisition of Papa John’s includes approximately $725 million of preferred equity and $1 billion of bridge financing. Brookfield Asset Management has reportedly committed financing for the transaction, including the preferred equity component, while seeking to syndicate a portion to other private credit investors.
Morgan Stanley is providing bridge financing and backstopping roughly $1 billion of debt to support the deal, according to Pitchbook. The financing details follow earlier reports that Irth Capital, backed by Brookfield, had offered $47 per share to acquire the pizza chain and that Papa John’s (Nasdaq: PZZA) largest franchisee had joined the bid.
Papa John’s, headquartered in Kentucky, is one of the world’s largest pizza delivery and carryout restaurant brands, operating through a mix of company-owned and franchised locations across North America and international markets.