DineEquity Completes $1.8 Billion Refinancing

Glendale-based DineEquity Inc. has completed a $1.8-billion refinancing of securitized debt and preferred stock, the company announced. The parent company of Applebee’s Neighborhood Grill & Bar and IHOP restaurants used the proceeds from its refinancing activities and other available cash to pay off its outstanding securitized debt, as well as to redeem the majority of the company’s Series A perpetual preferred stock. DineEquity redeemed $143 million of the preferred stock at a cost of $150 million, including a $6 million redemption premium, plus $900,000 of accrued and unpaid dividends as of Oct. 19. The company plans to redeem the remaining shares of its Series A perpetual preferred stock in the fourth quarter of 2010. “Our goal was to eliminate refinancing risk and to put in place a new capital structure with attractive interest rates, extended maturities, and with the ability to reduce debt and leverage over time from our cash flow,” said Jack Tierney, the company’s chief financial officer. “The new bank and bond debt will achieve those objectives.” Transaction costs related to the refinancing will be about $56 million, which will be amortized over a 7.5-year period. Jessica Vernabe