TAMPA Fla. OSI Restaurant Partners Inc. filed with regulators detailed terms of its pending billion-dollar-plus buyout, which will include debt financing of $2.7 billion and cash or equity contributions totaling about $1 billion.
The going-private transaction will total about $3.63 billion, including about $3.17 billion necessary for the buyout of shareholders at $40 per share, and the remaining funds earmarked for refinancing and merger fees, according to the company's proxy statement.
Equity financing, to be provided by private-equity investors Bain Capital Partners LLC and Catterton Management Company LLC, will include $853 million from Bain and $150 million from Catterton. OSI management will cover the remaining equity portion through its exchange of current shares in OSI Restaurant Partners to shares of the newly formed parent company, Kangaroo Holdings Inc. OSI's current cash on hand also will contribute to the deal's funding, according to the filing.
Debt financing, from Banc of America and Deutsche Bank, will include $1.1 billion in term loans, a six-year $250 million revolver, a $530 million real estate loan and $800 million in public bonds. The transaction is expected to be complete by April.
OSI operates or franchises more than 1,400 restaurants under the Outback Steakhouse, Carrabba's Italian Grill and six other brands.