The refinancing is a routine capital structure management event with no immediate catalyst for common equity. Monitor the closing and subsequent quarterly filings for the impact of higher interest expense on earnings. The $150M variable funding facility provides ongoing liquidity flexibility.
Price Chart
Executive Summary
Jack in the Box Inc. announced a $500 million securitized debt offering by its special-purpose subsidiary, Jack in the Box Funding, LLC, issuing Series 2026-1 7.624% Fixed Rate Senior Secured Notes. Proceeds will refinance existing securitized notes (Series 2019-1 and part of Series 2022-1) and support general corporate purposes. The company also plans a new $150 million variable funding note facility to replace an existing one. The refinancing extends maturities but at a higher coupon, modestly increasing interest expense.
Key Facts
- $500 million aggregate principal of Series 2026-1 7.624% Fixed Rate Senior Secured Notes, Class A-2 issued by Jack in the Box Funding, LLC.
- Net proceeds estimated at ~$488 million after transaction expenses.
- Proceeds used to repay $46.1M of Series 2019-1 4.476% Notes and $479.9M of Series 2022-1 3.445% Notes (partial), plus accrued interest/fees.
- New $150 million Series 2026-1 Variable Funding Senior Secured Notes, Class A-1 (revolving) will replace existing $150 million Series 2022-1 variable funding facility.
- Notes rated BBB- by S&P and BBB by KBRA; anticipated repayment date May 2031, legal final May 2056.
- Closing expected June 23, 2026, subject to customary conditions.
Financial Impact
Refinancing $526M of existing securitized debt at a higher weighted-average coupon (7.624% vs. ~3.5-4.5% on retired notes), increasing annual interest expense by roughly $15-20M. No new net cash raised for operations.
Risk Factors
- Higher interest expense from the 7.624% coupon could pressure net income and cash flow available for common shareholders.
- Execution risk if closing conditions are not met, though likely to close given the purchase agreement is signed.
- Securitized debt is non-recourse to Jack in the Box Inc., but the parent guarantees certain obligations; any deterioration in collateral performance could affect the SPV.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000807882-26-000075 |
| Exhibit: ex991-pressreleasexdebtpri.htm | 0000807882-26-000075 |
| Document: jack-20260612.htm | 0000807882-26-000075 |
| Document: 0000807882-26-000075-index-headers.html | 0000807882-26-000075 |
| Document: 0000807882-26-000075-index.html | 0000807882-26-000075 |
| Document: 0000807882-26-000075.txt | 0000807882-26-000075 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 20, 2026 9w ago | 8-K | $16.60 $15.90 | ▼ −4.22% | ▼ −5.33% | $11.23 (−32.35%) |
Jul 7, 2026 15w ago | 8-K | $14.42 $15.20 | ▲ +5.41% | ▲ +4.55% | $11.23 (−22.12%) |
Jun 23, 2026 17w ago | 8-K | $13.35 $17.41 | ▲ +30.41% | ▲ +28.70% | $11.23 (−15.88%) |
Jun 15, 2026 19w ago | 8-K | $12.92 $11.41 | ▼ −11.69% | ▼ −10.30% | $11.23 (−13.08%) |
Jun 11, 2026 19w ago | Institutional Cluster | $12.44 $12.40 | ▲ +0.32% | ▲ +0.76% | $11.23 (+9.73%) |
Jun 8, 2026 20w ago | 8-K | $11.58 $12.92 | ▲ +11.57% | ▲ +9.46% | $11.23 (−3.02%) |
May 29, 2026 21w ago | 8-K | $12.45 $11.95 | ▼ −4.02% | ▼ −3.72% | $11.23 (−9.80%) |
May 13, 2026 23w ago | 8-K | $10.98 $11.35 | ▼ −3.37% | ▼ −4.09% | $11.23 (−2.28%) |
May 4, 2026 25w ago | Insider Cluster | $12.05 $13.40 | ▲ +11.20% | ▲ +8.27% | $11.23 (−6.80%) |
May 4, 2026 25w ago | Insider Cluster | $12.05 $13.40 | ▲ +11.20% | ▲ +8.27% | $11.23 (−6.80%) |
US Market Status
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