Bloomin’ Brands hedges $300M debt with rate swaps

Bloomin’ Brands, Inc. reported that its subsidiary OSI Restaurant Partners, LLC entered into eight interest rate swap agreements on October 1, 2025 to manage exposure to variable interest rates on its debt.

Rhea-AI Filing Summary

Bloomin’ Brands, Inc. reported that its subsidiary OSI Restaurant Partners, LLC entered into eight interest rate swap agreements on October 1, 2025 to manage exposure to variable interest rates on its debt. The swaps cover an aggregate notional amount of $300 million.

The transactions effectively convert $100 million of outstanding indebtedness to a fixed rate of 3.37% from December 31, 2025 through December 31, 2026, and $200 million to a fixed rate of 3.18% from March 31, 2026 through December 31, 2027. In each case, the fixed rate is applied together with a 0.10% term SOFR adjustment and a spread of 150–250 basis points, and the swaps include an embedded floor of -0.10%.

The company describes these swap transactions as part of its efforts to manage interest rate risk on its floating-rate borrowings, while also including a standard caution that forward-looking statements are subject to various business and economic risks.

Insights

Corporate finance and capital structure analyst

Bloomin’ Brands hedges $300M of floating-rate debt with new swaps.

Bloomin’ Brands, through OSI Restaurant Partners, entered eight interest rate swaps with an aggregate notional of $300 million. These instruments convert existing floating-rate debt tied to SOFR into fixed-rate exposures of 3.37% on $100 million through December 31, 2026 and 3.18% on $200 million through December 31, 2027, plus a 0.10% SOFR adjustment and a 150–250-basis-point spread.

This structure reduces sensitivity to future interest rate changes over the 12- and 21‑month tenors, at the cost of forgoing potential benefit if base rates fall significantly. The embedded floor at -0.10% prevents the reference rate from dropping below that level in the swap calculation, which further limits upside from extreme rate declines.

The economic impact will depend on how SOFR evolves relative to the fixed rates plus spread over the swap periods beginning on December 31, 2025 and March 31, 2026. Subsequent periodic financial reports may show how these swaps affect interest expense and any mark‑to‑market movements in derivatives.

8-K Event Classification

2 items: 7.01, 9.01

2 items

Item 7.01 Regulation FD Disclosure Disclosure

Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Bloomin’ Brands (BLMN) announce regarding interest rate risk management?

Bloomin’ Brands disclosed that its subsidiary OSI Restaurant Partners, LLC entered into eight interest rate swap agreements on October 1, 2025 with an aggregate notional amount of $300 million to manage exposure to variable interest rates on its outstanding indebtedness.

What are the key terms of Bloomin’ Brands’ new interest rate swaps?

The swaps convert $100 million of debt to a fixed rate of 3.37% from December 31, 2025 to December 31, 2026 and $200 million to a fixed rate of 3.18% from March 31, 2026 to December 31, 2027, in each case plus a 0.10% term SOFR adjustment and a 150–250 basis point spread.

How do the interest rate swaps affect Bloomin’ Brands’ floating-rate debt?

Upon the effective dates, the swaps effectively convert $300 million of debt that had been accruing interest at SOFR plus a 0.10% adjustment and 150–250 basis points into obligations bearing the weighted average fixed rates shown in the table, plus the same SOFR adjustment and spread.

What is the significance of the embedded floor in Bloomin’ Brands’ swaps?

The swaps include an embedded floor of -0.10%, which means the reference rate used in the swap calculation will not fall below that level. This feature limits the benefit the company would receive if benchmark interest rates dropped sharply below that threshold.

Over what periods will Bloomin’ Brands’ new interest rate swaps be effective?

One swap tranche on $100 million is effective from December 31, 2025 through December 31, 2026, and the other on $200 million is effective from March 31, 2026 through December 31, 2027, providing 12‑ and 21‑month hedging periods.

Does Bloomin’ Brands provide any cautionary statements with this interest rate swap disclosure?

Yes. The company states that certain statements are forward‑looking and subject to risks and uncertainties, citing factors such as execution of turnaround plans, labor and commodity costs, economic conditions, interest rate changes, and compliance with debt covenants, and it refers readers to its most recent Form 10‑K and subsequent SEC filings.

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Accepted by SEC EDGAR 10/06/2025 - 08:30 AM EDT Learn about SEC filing dates

falseUSD0001546417iso4217:USDxbrli:shares00015464172025-10-012025-10-01

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported)  October 1, 2025

BLOOMIN’ BRANDS, INC.

(Exact name of registrant as specified in its charter)

Delaware			001-35625			20-8023465
(State or other jurisdiction of incorporation)			(Commission File Number)			(IRS Employer Identification No.)

2202 North West Shore Boulevard, Suite 500, Tampa, FL 33607

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code  (813) 282-1225

 N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock

$0.01 par value

BLMN

The Nasdaq Stock Market LLC (Nasdaq Global Select Market)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 7.01    Regulation FD Disclosure

On October 1, 2025, OSI Restaurant Partners, LLC (“OSI”), a subsidiary of Bloomin’ Brands, Inc. (the “Company”), entered into eight interest rate swap agreements with eight counterparties (the “Swap Transactions”) to manage its exposure to fluctuations in variable interest rates. The Swap Transactions have an aggregate notional amount of $300 million and include 12 and 21-month tenors with the following terms:

AGGREGATE NOTIONAL AMOUNT						WEIGHTED AVERAGE FIXED INTEREST RATE (1)						EFFECTIVE DATE						TERMINATION DATE
$	100,000,000					3.37%						December 31, 2025						December 31, 2026
$	200,000,000					3.18%						March 31, 2026						December 31, 2027

____________________

(1)The weighted averaged fixed interest rate excludes the term SOFR adjustment and interest rate spread described below.

Upon the effective date, as a result of the Swap Transactions, the Company effectively converted $300 million of its outstanding indebtedness from the Secured Overnight Financing Rate (“SOFR”), plus a term SOFR adjustment of 0.10% and a spread of 150 to 250 basis points to the weighted average fixed interest rate within the table above, plus a term SOFR adjustment of 0.10% and a spread of 150 to 250 basis points. The Swap Transactions have an embedded floor of minus 0.10%.

Forward-Looking Statements

Certain statements contained herein are not based on historical fact and are “forward-looking statements” within the meaning of applicable securities laws. Generally, these statements can be identified by the use of words such as “guidance,” “believes,” “estimates,” “anticipates,” “expects,” “on track,” “feels,” “forecasts,” “seeks,” “projects,” “intends,” “plans,” “may,” “will,” “should,” “could,” “would” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the Company’s forward-looking statements. These risks and uncertainties include, but are not limited to: our ability to execute and achieve the expected benefits of our turnaround plans; consumer reaction to public health and food safety issues; increases in labor costs and fluctuations in the availability of employees and our ability to attract, train, and retain key personnel; increases in unemployment rates and taxes; competition; interruption or breach of our systems or loss of consumer or employee information; price and availability of commodities and other impacts of inflation and tariffs; our dependence on a limited number of suppliers and distributors; political, social and legal conditions in international markets and their effects on foreign operations and foreign currency exchange rates; the impacts of our operations in Brazil as a minority investor and franchisor following our sale transaction on our results; our ability to address corporate citizenship and sustainability matters and investor expectations; local, regional, national and international economic conditions; changes in patterns of consumer traffic, consumer tastes and dietary habits; the effects of changes in tax laws; costs, diversion of management attention and reputational damage from any claims or litigation; government actions and policies; challenges associated with our remodeling, relocation and expansion plans; our ability to preserve the value of and grow our brands; consumer confidence and spending patterns; the effects of a health pandemic, weather, acts of God and other disasters and the ability or success in executing related business continuity plans; the Company’s ability to make debt payments and planned investments and the Company’s compliance with debt covenants; the cost and availability of credit; interest rate changes; and any impairments in the carrying value of goodwill and other assets. Further information on potential factors that could affect the financial results of the Company and its forward-looking statements is included in its most recent Form 10-K and subsequent filings with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statement, except as may be required by law. These forward-looking statements speak only as of the date of this release. All forward-looking statements are qualified in their entirety by this cautionary statement.

Item 9.01    Financial Statements and Exhibits

(d) Exhibits.

			Exhibit Number						Description
			104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

									BLOOMIN’ BRANDS, INC.
									(Registrant)
Date:			October 6, 2025			By:			/s/ Eric Christel
									Eric Christel
									Executive Vice President and Chief Financial Officer (Principal Financial Officer)