Jack in the Box plans debt refinancing and $110 million repayment

Jack in the Box Inc. (NASDAQ: JACK) announced plans to repay $110 million of its existing Series 2019-1 4.476% Fixed Rate Senior Secured Notes on June 10, 2026, ahead of the scheduled August 2026 date. The repayment will be funded through cash on hand and excess funding from company-owned life insurance policy assets.

The early repayment will bring the company's total debt reduction in 2026 to $236.4 million, including amortization payments. Following the repayment, outstanding securitized debt will be reduced to approximately $1.5 billion under the Series 2019-1 Class A-2 Notes and Series 2022-1 Class A-2 Notes.

The San Diego-based restaurant company also plans a refinancing transaction comprising $500 million of senior secured fixed rate notes and $150 million of variable funding notes. Proceeds from the new notes will refinance the Series 2019-1 Class A-2 Notes, a portion of the Series 2022-1 Class A-2 Notes, and the Series 2022-1 Variable Funding Notes in full, while covering transaction costs.

"Debt reduction remains a priority, and these actions mark another important step in strengthening Jack in the Box's financial foundation," said Mark King, Executive Chairman and Interim Chief Executive Officer.

The refinancing transaction is subject to market conditions and is expected to close in the third quarter. The company noted there is no assurance the transaction will be completed on the described terms.

Jack in the Box operates and franchises approximately 2,128 restaurants across 24 states, Guam and Mexico. The moves are part of the company's "JACK on Track" plan to optimize its capital structure.

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