Goldman, Sachs & Co. and CIBC Wood Gundy plan to bring to market on Wednesday a $175 million leveraged loan for AFC Enterprises Inc., the second-largest fast-food chicken restaurant chain in the world.

Also known as America's Favorite Chicken, AFC franchises and operates 2,330 restaurants in 21 countries under the names Popeye's Chicken & Biscuits and Church's Chicken. It is 55% owned by California-based leveraged buyout firm Freeman, Spogli & Co.

The credit will be used to refinance existing debt, for acquisitions, and for general corporate purposes. It is divided among a $50 million five- year term loan, a $100 million five-year multi-draw acquisition line, and a $25 million five-year revolver.

Initial pricing begins at the London interbank offered rate plus 225 basis points and is based on a grid tied to leverage. The ratio of total debt to EBITDA (earnings before interest, tax, depreciation and amortization) is 3.7 times.

Goldman Sachs and CIBC Wood Gundy are co-arrangers on the credit, with Goldman as the syndication agent, CIBC as the administrative agent.

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