NPC International refinanced its outstanding $368 million term loan and $100 million revolving credit facility. The refinancing resulted in a 75 basis point reduction in the spread over LIBOR on the company's term loan borrowings and a 175 basis point reduction in the spread over LIBOR on the company's existing revolving credit facility. This refinancing also extends the maturity date of the revolving credit facility by one year to December 28, 2017. Currently, no amounts are drawn on the revolving credit facility.

At prevailing LIBOR rates this action serves to reduce annual interest expense by approximately $3.0 million. The company paid a soft call premium, in accordance with the terms of its Credit Agreement, plus transaction related expenses totaling approximately $4.5 million to effectuate the refinancing. No other material changes were made to the Company's senior credit facility in the refinancing.

Jim Schwartz, chairman and CEO of NPC International, said "We are pleased with our strong performance in fiscal 2012 that has allowed the company to avail itself of favorable market conditions a second time following the sale of the Company in December 2011. The results of this refinancing effort will further reduce our interest cost and increase our free cash flow, which will complement the company's plans for development next year while maintaining a strong deleveraging profile."

NPC International is a Pizza Hut franchisee and currently operates 1,223 Pizza Hut restaurants and delivery units in 28 states.