Wendy's 2013 Annual Report Download - page 51

Based upon current levels of operations, the Company expects that available cash and cash flows from
operations will provide sufficient liquidity to meet operating cash requirements for the next 12 months.
Capitalization
Year End
2013
Long-term debt, including current portion ........................................ $1,463.8
Stockholders’ equity ......................................................... 1,929.5
$3,393.3
The Wendy’s Company’s total capitalization at December 29, 2013 decreased $50.1 million from $3,443.4 million
at December 30, 2012 and was impacted principally by the following:
• Dividends paid of $70.7 million;
• Stock repurchases of $69.3 million; partially offset by
• Treasury share issuances of $42.6 million for exercises and vestings of share-based compensation awards; and
• comprehensive income of $29.0 million.
Long-Term Debt, Including Current Portion
Year End
2013
Term A Loans .............................................................. $ 570.6
Term B Loans .............................................................. 767.5
7% debentures ............................................................. 84.7
Capital lease obligations ...................................................... 40.7
Other .................................................................... 0.3
Total long-term debt, including current portion ................................ $1,463.8
Except as described below, there were no material changes to the terms of any debt obligations since
December 30, 2012. See Note 10 of the Financial Statements and Supplementary Data contained in Item 8 herein,
for further information related to our long-term debt obligations.
Refinancings of the Credit Agreement and Other Indebtedness
On May 15, 2012, Wendy’s entered into the Credit Agreement which included, among other instruments, a
senior secured term loan facility of $1,125.0 million (“Term B Loans”). The Term B Loans were issued at 99.0% of
the principal amount, representing an original issue discount of 1.0% resulting in net proceeds of $1,113.8 million.
The discount of $11.3 million was accreted and the related charge included in “Interest expense” through the
subsequent refinancing described below. During the year ended December 30, 2012, Wendy’s incurred $15.6 million
in costs related to the Credit Agreement, which were amortized to “Interest expense” through the subsequent
refinancing described below utilizing the effective interest rate method. The Credit Agreement replaced the
$650.0 million credit agreement and the amended senior secured term loan (the “2010 Term Loan”) executed in
2010.
On May 16, 2013, Wendy’s amended and restated the Credit Agreement. The Restated Credit Agreement is
comprised of (1) a $350.0 million senior secured term loan facility (“Term A Loans”) which will mature on May 15,
2018 and bears interest at the Eurodollar Rate (as defined in the Restated Credit Agreement) plus 2.25%,
(2) $769.4 million of Term B Loans which will mature on May 15, 2019 and bears interest at the Eurodollar Rate
plus 2.50% with a floor of 0.75% and (3) a $200.0 million senior secured revolving credit facility which will mature
on May 15, 2018. The proceeds from the Term A Loans were used to refinance a portion of our existing Term B
Loans. As a result of this refinancing, Wendy’s incurred a loss on the early extinguishment of debt of $21.0 million
during the second quarter of 2013. The Restated Credit Agreement also contains provisions for an uncommitted
increase of up to $275.0 million principal amount of the Term B Loans subject to the satisfaction of certain
conditions. The revolving credit facility includes a sub-facility for the issuance of up to $70.0 million of letters of
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