Lake Forest-based Del Taco Restaurants Inc. refinanced $164 million in debt under a new five-year, $250 million credit facility, cutting its borrowing costs by 3 percentage points and its annual interest payments by $5.4 million.
The new deal comes on top of an interest savings of $13 million that Del Taco said in regulatory filings in April would come after its purchase by Chicago-based Levy Acquisition Corp. and emergence as a public company, which happened June 30.
Del Taco’s debt prior to the purchase was $330 million, and its annual interest payments were $31 million in 2014.
Del Taco Chief Financial Officer Steven L. Brake said through a spokesperson that Del Taco had about $180 million in debt before the refinance and that it “covered all of our outstanding third party debt (other than capitalized leases).”
He said in a news release that the move “materially reduces our annual interest expense, enhancing our net income and free cash flow.”
