Texas burger chain Whataburger is returning to the debt market to cut borrowing costs on its existing leveraged loan and redeem the remaining preferred equity on its balance sheet, finishing a transaction it started earlier this year.
The restaurant chain, known for its white and orange restaurants and hefty burgers, launched a $2.73 billion leveraged loan offering, according to Bloomberg News. It will use $2.59 billion to reprice its existing obligation and an incremental $140 million loan will be used to redeem preferred equity, Bloomberg reported. Morgan Stanley is leading the transaction. A slowdown in new supply has given issuers an upper hand as they return to the debt market to reprice their loans.