Wingstop Inc

NASDAQ:WINGUnited States

1407 ET - Wingstop's $500 million facility with Morgan Stanley and Barclays sets the stage for an incremental return of capital to shareholders, Baird analysts say in a research note. These returns will most likely be in the form of an accelerated share-repurchase program. The transaction, expected to close Dec. 3, will greatly increase the restaurant chain's cash balance, analysts say. At the same time, the company will likely realize about $30 million of additional annual interest expense on a go-forward basis, potentially dinging earnings. All in, though, "the addition of debt and anticipated reduction to shares outstanding should serve to reduce the company's overall cost of capital, and lead to longer-term accretion for shareholders," the analysts write. (connor.hart@wsj.com)

Wingstop Inc. Announces Intention to Enter Into New Securitized Financing Facility

PR Newswire

DALLAS, Nov. 13, 2024

DALLAS, Nov. 13, 2024 /PRNewswire/ -- Wingstop Inc. ("Wingstop" or the "Company") (NASDAQ: WING), today announced its intention to complete a securitized financing transaction, which will include a new series of securitized debt. The Company also expects to upsize the capacity of its variable funding note facility.