Wendy's 2009 Annual Report Download - page 57

Our total capitalization at January 3, 2010 was $3,859.2 million, consisting of stockholders’ equity of
$2,336.3 million and long-term debt of $1,522.9 million, including current portion. Our total capitalization
at January 3, 2010 increased $364.2 million from $3,495.0 million at December 28, 2008 and was principally
impacted by the following:
•The $411.3 million net increase in long-term debt is principally due to the issuance of $565.0 million
principal amount of Senior Notes less the $132.5 million prepayment on our senior secured term loan;
•Cash dividends paid of $28.0 million;
•Net income of $5.1 million;
•The components of “Accumulated other comprehensive loss,” that are not included in the calculation of
net income, of which $37.6 million principally reflects the currency translation adjustment in 2009;
and
•Repurchases of common stock of $78.4 million, excluding commissions of $0.3 million and including
$5.8 million of repurchases that were not settled until after year end.
Long-term Debt
As of January 3, 2010
(In Millions)
10.00% Senior Notes ........................................................... $ 551.8
Senior secured term loan ........................................................ 251.5
6.20% senior notes ............................................................. 204.3
6.25% senior notes ............................................................. 193.6
Sale-leaseback obligations, excluding interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125.2
Capitalized lease obligations, excluding interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89.9
7% Debentures................................................................. 80.1
Secured equipment term loan.................................................... 18.9
Other.......................................................................... 7.6
$1,522.9
Except as described below, there were no material changes to the terms of any debt obligations since
December 28, 2008. See Note 8 of the Consolidated Financial Statements contained in Item 8 of this
document for more information related to our long-term debt obligations.
Senior Notes
On June 23, 2009, our subsidiary Wendy’s/Arby’s Restaurants issued $565.0 million principal amount of
Senior Notes. The Senior Notes will mature on July 15, 2016 and accrue interest at 10.00% per annum,
payable semi-annually on January 15 and July 15. The first payment was made on January 15, 2010. The
Senior Notes were issued at 97.533% of the principal amount, representing a yield to maturity of 10.50% and
resulting in net proceeds paid to us of $551.1 million. The $13.9 million discount is being accreted and the
related charge included in “Interest expense” until the Senior Notes mature. The Senior Notes are fully and
unconditionally guaranteed, jointly and severally, on an unsecured basis by the Guarantors.
An Indenture for the Senior Notes dated as of June 23, 2009 (the “Indenture”) among Wendy’s/Arby’s
Restaurants, the Guarantors and U.S. Bank National Association, as trustee (the “Trustee”), includes certain
customary covenants that, subject to a number of important exceptions and qualifications, limit the ability of
Wendy’s/Arby’s Restaurants and its restricted subsidiaries to, among other things, incur debt or issue preferred
or disqualified stock, pay dividends on equity interests, redeem or repurchase equity interests or prepay or
repurchase subordinated debt, make some types of investments and sell assets, incur certain liens, engage in
transactions with affiliates (except on an arms-length basis), and consolidate, merge or sell all or substantially
all of their assets. The covenants generally do not restrict Wendy’s/Arby’s or any of its subsidiaries that are not
Wendy’s/Arby’s Restaurants’ subsidiaries.
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