Wedbush says Dine refinancing brackets risk from incremental interest expense

Wedbush notes that Dine Brands announced intention to refinance its Class A-2-I Senior Secured Notes. The firm expects the incremental interest expense to be in line with-to-below its current annualized estimate. Wedbush already incorporated a 6.5% blended interest rate in its 2024 estimates, with the incremental annualized interest expense being roughly $17.5M vs. its Q4 2023 annualized assumption. Taking the $450M midpoint of the expected range and assuming a 8.5% interest rate, the incremental interest impact equates to $13.5M, the firm points out. Wedbush has an Outperform rating on the shares with a price target of $85.