Dine Brands To Issue $600 Mln In Class A-2 Notes, Plans To Refinance Existing Debt

(RTTNews) - Dine Brands Global, Inc. (DIN), the parent company of Applebee's, IHOP, and Fuzzy's Taco Shop, announced that it has entered into a purchase agreement for the issuance and sale of $600 million in Series 2025-1 Class A-2 Fixed Rate Senior Secured Notes.

These notes, bearing an annual interest rate of 6.720% and a five-year term, will be issued through two of Dine Brands' indirect special purpose subsidiaries in a privately placed securitization.

The subsidiaries will hold the domestic franchising, rental, and financing assets of Applebee's and IHOP, with cash flows from these assets supporting the interest and principal payments on the Class A-2 Notes. Dine Brands also plans to align the maturities of its funding structure by replacing the existing Series 2022-1 Class A-1 Variable Funding Senior Notes with new Series 2025-1 Class A-1 Notes on similar terms.

Proceeds from the Class A-2 Notes will go toward repaying outstanding amounts on the 2019-1 Refinancing Notes, covering refinancing transaction costs, and supporting general corporate activities. As of March 31, 2025, the 2019-1 Notes had an outstanding balance of approximately $594 million. Meanwhile, $224 million remained available under the 2022-1 Notes, with $100 million drawn and $1 million pledged for letters of credit.

The transaction is expected to close around June 17, 2025, subject to standard closing conditions. The announcement also clarified that this release does not represent an offer or solicitation to buy or sell the notes, which are not registered under the Securities Act of 1933 and may only be sold under specific exemptions.

Thursday, DIN closed at $24.00, down 2.72%, and is currently trading slightly higher at $24.01, up 0.04% on the NYSE.