Jack in the Box Inc. Completes $500 Million Securitized Financing Facility

Key Terms

securitized financing facility financial

A securitized financing facility is a loan or line of credit that is backed by a pool of financial assets—such as loans, leases, or receivables—packaged together and used as collateral. Think of it like borrowing money against a bundled set of IOUs: the lender looks to the payments from that bundle, not the borrower’s general cash, for repayment. Investors watch these facilities because they affect a company’s access to cash, the risk that asset payments will fall short, and how much debt appears on the balance sheet.

senior secured notes financial

Senior secured notes are loans a company sells to investors that are backed by specific assets and given first priority for repayment if the company defaults. Because they have a claim on collateral and are paid before other debts, they usually offer lower risk and correspondingly lower interest than unsecured debt; investors use them to judge how safe repayment and recovery of principal might be, like holding a mortgage instead of an unsecured credit card balance.

variable funding senior secured notes financial

A variable funding senior secured note is a type of loan-like investment that lets a borrower draw, repay and redraw funds up to a set limit while paying interest that can change over time. It is “senior” because holders are first in line to be repaid if the borrower defaults, and “secured” because the loan is backed by specific assets, lowering risk much like a mortgage. Investors care because this structure offers priority repayment and asset backing but also exposes them to changing interest income and the borrower’s ongoing funding needs.

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SAN DIEGO--(BUSINESS WIRE)-- Jack in the Box Inc. (NASDAQ: JACK) (the “Company”) today announced that one of its indirect, limited-purpose subsidiaries (the “Master Issuer”) has completed the sale of $500 million of its Series 2026-1 7.624% Fixed Rate Senior Secured Notes, Class A-2 (the “2026 Notes”).

The net proceeds of the sale of the 2026 Notes are expected to be used to (i) repay in full the Company’s existing Series 2019-1 4.476% Fixed Rate Senior Secured Notes, Class A-2-II and (ii) repay a portion of the Series 2022-1 3.445% Fixed Rate Senior Secured Notes, Class A-2-I.

“The successful completion of this refinancing demonstrates our commitment to maintaining a strong balance sheet and reducing debt as part of our ‘JACK on Track’ plan,” said Mark King, Executive Chairman and Interim Chief Executive Officer of Jack in the Box Inc. “We are pleased to have cleared our near-term maturities, with our next anticipated repayment date in 2029, supporting our focus on sustainable value creation.”

The Master Issuer also entered into a purchase agreement under which it will issue up to $150 million of its Series 2026-1 Variable Funding Senior Secured Notes, Class A-1 (the “Class A-1 Notes”), which will allow the Master Issuer to borrow amounts from time to time on a revolving basis. The Class A-1 Notes will replace the Company’s existing $150 million Series 2022-1 Variable Funding Senior Secured Notes, Class A-1.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the 2026 Notes or any other security. The 2026 Notes to be offered have not been, and will not be, registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933.

About Jack in the Box Inc.

Jack in the Box Inc. (NASDAQ: JACK), founded and headquartered in San Diego, California, is a restaurant company that operates and franchises Jack in the Box®, one of the nation's largest hamburger chains with approximately 2,128 restaurants across 24 states, Guam and Mexico. For more information, including franchising opportunities, visit www.jackinthebox.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may be identified by words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “goals,” “guidance,” “intend,” “plan,” “project,” “may,” “will,” “would” and similar expressions. These statements are based on management’s current expectations, estimates, forecasts and projections about our business and the industry in which we operate. These estimates and assumptions involve known and unknown risks, uncertainties, and other factors that are in some cases beyond our control. Factors that may cause our actual results to differ materially from any forward-looking statements include, but are not limited to: the success of new products, marketing initiatives and restaurant remodels and drive-thru enhancements; the impact of competition, unemployment, trends in consumer spending patterns and commodity costs; the Company’s ability to achieve and manage its planned growth, which is affected by the availability of a sufficient number of suitable new restaurant sites, the performance of new restaurants, risks relating to expansion into new markets and successful franchise development; the ability to attract, train and retain top-performing personnel, litigation risks; risks associated with disagreements with franchisees; supply chain disruption; food-safety incidents or negative publicity impacting the reputation of the Company's brand; increased regulatory and legal complexities, risks associated with the amount and terms of the securitized debt issued by certain of our wholly owned subsidiaries; stock market volatility. These and other factors are discussed in the Company’s annual report on Form 10-K and its periodic reports on Form 10-Q filed with the Securities and Exchange Commission, which are available online at http://investors.jackinthebox.com or in hard copy upon request. The Company undertakes no obligation to update or revise any forward-looking statement, whether as the result of new information or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260623698464/en/

Rachel Webb
858-522-4556
rachel.webb@jackinthebox.com

Source: Jack in the Box Inc.