Sizzling Platter Prepping $905M Debt Package to Fund Bain Capital LBO

UBS and Jefferies are premarketing a $905 million bond and loan package to fund Bain Capital’s acquisition of restaurant franchisee Sizzling Platter, according to sources familiar with the situation.

The financing will include a Jefferies-led $505 million first lien term loan that is expected to be offered in the SOFR+450bps range at 98.5 OID as well as $400 million in senior secured debt being whispered in the mid-8% range, which will be led by UBS, the sources said.

Proceeds will fund Bain Capital’s acquisition of Sizzling Platter from CapitalSpring, which was reported on April 9. One of the sources noted that the deal valued the company at $1.29 billion and added that Bain contributed $480 million to support the buyout, representing a 35% equity check.

Syndication on Sizzling Platter’s deal is expected to launch as soon as this week, two of the sources said. A $150 million delayed-draw term loan and $175 million revolver is also included in the financing, according to sources.

One of the sources noted that the banks have been waiting to receive regulatory approval from Mexico before launching the deal, since Sizzling Platter operates several restaurant locations in the country.

Sizzling Platter is marketing the deal on $165 million in pro forma adjusted EBITDA, implying 5.5x and 5.3x total and net leverage, respectively, according to the source.

Utah-based Sizzling Platter operates over 750 restaurant franchise locations in North America, including Little Caesars, Jamba Juice, Wing Stop, Jersey Mike’s, Dunkin, Red Robin, Cinnabon and Sizzler.

Fitch revised its outlook on Sizzling Platter to stable from positive in April reflecting its “heightened re-leveraging risk“ as a result from the acquisition, according to a note. The rating agency holds a B- rating on the company.

Sizzling Platter’s existing 8.5% notes maturing in November 2025 were last trading in the secondary on May 30 at around 100.22 to yield 8.04%, according to MarketAxess.

UBS and Bain declined to comment. Sizzling Platter and Jefferies did not return requests for comment.