08:10 AM EDT, 06/05/2025 (MT Newswires) -- Dine Brands Global ( DIN ) said Thursday it has entered into a purchase agreement for a $600 million private placement of series 2025-1 class A-2 fixed rate senior secured notes.

The notes, bearing a 6.72% annual interest rate and a five-year term, will be issued by two indirect, special purpose subsidiaries of Dine Brands, with interest payments to be made quarterly, the company said.

The co-issuers will own essentially all domestic franchising, rental, and financing assets of Applebee's and IHOP and will use the cash flows from these assets to service the notes, the company said.

Additionally, Dine Brands plans to replace its 2022-1 class A-1 variable funding notes with a new 2025-1 issuance aligned in maturity with the new fixed rate notes.

Proceeds from the transaction will be used to repay the $594 million outstanding balance of Dine Brands' existing 2019-1 class A-2-II notes, cover transaction-related expenses, and fund general corporate purposes.

The refinancing is expected to close on or around June 17, Dine Brands said.

Shares were 1.2% higher in recent premarket activity.