Texas Burger Chain Whataburger Taps Loan Market for $340 Million

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Whataburger, the beloved Texas-based fast-food chain known for its orange and white restaurants and hefty patties, is tappingBloomberg Terminal the leveraged loan market for $340 million to redeem a portion of its outstanding preferred equity.

The closely held restaurant is working with lead bank Morgan Stanley on the transaction, according to people familiar with the matter. Initial pricing discussions for the deal — an add-on to its existing loan — are for a margin of between 300 and 325 basis points over the Secured Overnight Financing Rate, depending on leverage, at a discount price of 99.03 cents, the people said. Commitments are due Wednesday at 5 p.m. New York time and are expected to allocate Thursday.

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