"The Burger King stock was surging by 16.1% to $19.10 in premarket trading Wednesday. The status of the talks is unclear but one interested firm was 3i Group, a British private-equity firm, the Journal says, citing people familiar with the matter."
According to Kosman, we can predict that certain companies will have trouble refinancing their debt. We obtain that the information in a report by Moody's showing which companies are indebted, by how much, and when the debt is due.
According to that Moody's report, "Burger King Corporation owes US$ 666.2 million in Bank Credit Facility, rated Ba2, and due 06/30/12."
So in less than two years, Burger King is going to have refinance over $650 million of debt - when it's own market share has decreased, and it seems to be a death struggle with its franchisees, NFA, over the ability of the franchisor to dictate money losing value meals to its franchisees.
I recommend that every association leader, executive, board member in the Burger King franchisee association read Kosman's excellent book to prepare for what might happen to the Burger King system.
We will have more on this story, and hopefully the NFA website will also contain updates for its members.
