Bloomin' Brands Enters Interest Rate Swaps

TL;DR

Bloomin' Brands is hedging interest rate risk with new swaps.

AI Summary

Bloomin' Brands, Inc. filed an 8-K on March 8, 2024, to report on interest rate swaps entered into on March 5, 2024. These financial instruments are designed to manage the company's exposure to fluctuations in interest rates.

Why It Matters

This filing indicates Bloomin' Brands is actively managing its financial risk related to interest rate changes, which could impact its borrowing costs and overall profitability.

Risk Assessment

Risk Level: low — The filing pertains to routine financial risk management and does not indicate any immediate operational or financial distress.

Key Players & Entities

• Bloomin' Brands, Inc. (company) — Registrant
• March 5, 2024 (date) — Date of interest rate swaps
• March 8, 2024 (date) — Date of 8-K filing

FAQ

Key Financial Figures

• $175 million — ions, the Company effectively converted $175 million of its outstanding indebtedness from th

Filing Documents

• blmn-20240305.htm (8-K) — 37KB
• blmn-20240305_g1.jpg (GRAPHIC) — 37KB
• 0001546417-24-000070.txt ( ) — 273KB
• blmn-20240305.xsd (EX-101.SCH) — 2KB
• blmn-20240305_lab.xml (EX-101.LAB) — 25KB
• blmn-20240305_pre.xml (EX-101.PRE) — 15KB
• blmn-20240305_htm.xml (XML) — 3KB

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure On March 5, 2024, OSI Restaurant Partners, LLC ("OSI"), a subsidiary of Bloomin' Brands, Inc. (the "Company"), entered into five interest rate swap agreements with five counterparties (the "Swap Transactions") to manage its exposure to fluctuations in variable interest rates. The Swap Transactions have two-year tenors with the following terms: AGGREGATE NOTIONAL AMOUNT WEIGHTED AVERAGE FIXED INTEREST RATE (1) EFFECTIVE DATE TERMINATION DATE $ 175,000,000 4.40% March 29, 2024 March 31, 2026 ____________________ (1) The weighted averaged fixed interest rate excludes the term SOFR adjustment and interest rate spread described below. In connection with the Swap Transactions, the Company effectively converted $175 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

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: consumer reaction to public health and food safety issues; increases in labor costs and fluctuations in the availability of employees; 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; 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; 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;

01 Financial Statements and Exhibits

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: March 8, 2024 By: /s/ Christopher Meyer Christopher Meyer Executive Vice President and Chief Financial Officer (Principal Financial Officer)