Research Update: IRB Holding Corp. 'B' Rating Affirmed On Dunkin' Brands Acquisition; Removed From CreditWatch; Outlook Positive

Atlanta-based restaurant franchisor and operator IRB Holding Corp. (Inspire) is issuing $2.575 billion of incremental first-lien term loan to help fund its acquisition of Dunkin' Brands Group, Inc. (Dunkin'). We are affirming our 'B' long-term issuer credit rating on Inspire and removing all ratings from CreditWatch, where we placed them with positive implications on Nov. 2. We are assigning our 'B' issue-level rating to the company's proposed term loan and affirming our 'B' issue-level rating on its other senior secured facilities, and revised our recovery rating on the debt to '3' from '4'. We are also affirming our 'CCC+' issue-level rating on the company's unsecured notes; the '6' recovery rating is unchanged. The positive outlook reflects our view that integrating

...- Atlanta-based restaurant franchisor and operator IRB Holding Corp. (Inspire) is issuing $2.575 billion of incremental first-lien term loan to help fund its acquisition of Dunkin' Brands Group, Inc. (Dunkin'). - We are affirming our 'B' long-term issuer credit rating on Inspire and removing all ratings from CreditWatch, where we placed them with positive implications on Nov. 2. - We are assigning our 'B' issue-level rating to the company's proposed term loan and affirming our 'B' issue-level rating on its other senior secured facilities, and revised our recovery rating on the debt to '3' from '4'. - We are also affirming our '###+' issue-level rating on the company's unsecured notes; the '6' recovery rating is unchanged. - The positive outlook reflects our view that integrating Dunkin' into the Inspire Platform could lead to a higher rating as the pace and sustainability of credit metric improvement becomes clearer....

Research Update