JACK IN THE BOX INC 8-K

What Happened
Jack in the Box Inc. announced on June 23, 2026 that its bankruptcy-remote subsidiary, Jack in the Box Funding, LLC (the Master Issuer), completed a privately placed securitization offering. The Master Issuer issued $500 million of Series 2026-1 7.624% Fixed Rate Senior Secured Notes, Class A-2, and established a revolving Series 2026-1 Variable Funding Senior Secured Notes, Class A-1 facility allowing up to $150 million of draws (including letters of credit). The transaction is secured by substantially all assets of the securitization entities (principally franchise-related agreements, certain restaurants, and intellectual property) and is guaranteed by certain designated subsidiary guarantors. Proceeds were used to repay prior 2019 and 2022 securitization notes and any remaining net proceeds will flow to the holding company and then to Jack in the Box Inc. for general corporate purposes.

Key Details

• Closing date: June 23, 2026. Trustee and securities intermediary: Citibank, N.A.
• Class A-2 Notes: $500,000,000 issued, 7.624% fixed, quarterly payments; legal final maturity May 2056; anticipated repayment date May 2031 (with stepped-up interest if not repaid by then).
• Variable Funding Notes (Class A-1): up to $150,000,000 facility; expected $39M draw at closing and ~ $56M of undrawn letters of credit outstanding at closing; unused-commitment fee 50–100 bps; interest tied to prime, federal funds, SOFR or commercial paper costs plus margin; anticipated repayment on or before May 2031 (two 1-year extension options); post-anticipated repayment additional interest = 5.00% p.a.
• Use of proceeds: repaid $46,113,681.10 of Series 2019-1 Class A-2-II and $479,894,390.00 (portion) of Series 2022-1 Class A-2-I; remaining net proceeds to holding company then to Jack in the Box Inc.
• Collateral & structure: Securitized Assets include most revenue-generating assets (franchise agreements, certain Company restaurants, IP/licenses); Guarantors granted security interests in substantially all their assets (subject to certain exclusions/limitations); obligations are of the Master Issuer and guaranteed by the Guarantors—other Company subsidiaries generally are not liable.

Why It Matters

• Liquidity and refinancing: The transaction refinances prior securitized notes and provides a committed variable funding facility, which changes the Company’s securitized debt profile and supplies near-term liquidity.
• Secured debt backed by core revenue streams: The new notes are secured by franchise agreements, certain restaurants and IP—assets that generate ongoing revenue—so payments on these notes are tied to those cash flows.
• Investor implications and protections: The financing includes customary covenants, reserve accounts, rapid amortization triggers (e.g., debt-service coverage, sales tests, manager termination/change of control events) and events of default that could accelerate repayment. Obligations are primarily those of the securitization entities and their guarantors; the parent company’s direct liability is limited as described in the filing.
• Transparency: The company issued a press release on June 23, 2026 and filed relevant transaction documents as exhibits to the Form 8-K for review.