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    Arby's to Offer Notes

  • Industry News November 6, 2000
    Triarc Companies, Inc. (NYSE:TRY) announced today that its restaurant franchising subsidiary, Arby's, Inc., intends to offer approximately $290 million of fixed rate insured notes ("Notes''), through a special purpose financing vehicle, pursuant to Rule 144A of the Securities Act of 1933, as amended (the "Securities Act'').

    The Notes will be backed by Arby's franchise royalty payments. The financing is expected to close by the end of the fourth quarter of 2000, and Triarc expects to receive net cash available proceeds of $250 million from the financing, which is net of approximately $30 million of proceeds to be put into a reserve account, as well as transaction fees and expenses.

    Taking into account the sale of the Snapple Beverage Group and the consummation of the financing, Triarc's cash and investment position will be in excess of $650 million and pro forma debt will be approximately $310 million. Triarc is evaluating options for the use of its cash, including acquisitions, share repurchases and investments.

    The Notes will be offered only to certain qualified institutional buyers in the United States and to certain non-U.S. persons in reliance on Regulation S under the Securities Act. The Notes proposed to be issued will not be registered under the Securities Act, and may not be offered or sold within the United States except pursuant to an exemption from the Securities Act, or in a transaction not subject to the registration requirements of the Securities Act. This press release shall not constitute an offer to sell or a solicitation of an offer to buy such Notes, nor shall there be any sale of Notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.

    * There can be no assurance that this financing transaction will be completed or that if completed it will raise $290 million.

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