Einstein Noah plans to pay down second-lien term loan, portion of first-lien term loan

By Angela McDaniels

Seattle, April 10 - Einstein Noah Restaurant Group Inc., formerly New World Restaurant Group Inc., plans to repay its $65 million second-lien term loan in full and a portion of its $80 million first-lien term loan with proceeds from its initial public offering, according to an S-1 report filed with the Securities and Exchange Commission on Tuesday.

Concurrently with the IPO, the company also plans to increase its revolving credit facility to $20 million from $15 million and to decrease the first-lien term loan to $70 million or less.

Both the amended revolver and term loan are expected to have five-year terms and will continue to be secured by substantially all of the company's assets.

Einstein said it will use a portion of the IPO proceeds to repay its $25 million subordinated note held by Greenlight Capital LLC, its equity sponsor, and will use any remaining proceeds for further debt reduction.

New World Restaurant is a Golden, Colo.-based company that operates, franchises and licenses bagel specialty restaurants.

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