Diversified Restaurant interest spans Libor plus 225 bps to 350 bps

By Wendy Van Sickle

Columbus, Ohio, July 1 – Diversified Restaurant Holdings, Inc.’s new $155 million senior secured credit facility bears leverage-based interest ranging from Libor plus 225 basis point to Libor plus 350 bps, according to filings with the Securities and Exchange Commission.

The initial rate is Libor plus 350 bps.

As previously reported, the company entered into the facility Tuesday in part to support its acquisition of 18 Buffalo Wild Wings restaurants in Missouri and Illinois.

The agreement includes a $120 million term loan, an unfunded $30 million development line of credit to support continued store growth and an unfunded $5 million revolver to support working capital needs, according to the release.

At closing, the term loan was fully drawn with approximately $65.5 million used to refinance existing outstanding debt, $54 million to finance the acquisition and about $500,0000 to pay closing costs for the facility, according to the SEC filings. The term loan matures on June 29, 2020.

The revolver also has a five-year term. The development line of credit has a two-year term and is convertible upon maturity into a term note.

Citizens Bank NA is the administrative agent. It and BMO Capital Markets are the joint lead arrangers, and BMO is the syndication agent.

Fifth Third Bank and Regions Bank are the co-documentation agents.

Diversified is a Southfield, Mich.-based owner, operator and franchisor of the full-service restaurants Bagger Dave’s Legendary Burger Tavern and Buffalo Wild Wings.

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