Ruth’s Hospitality reduces revolver to $120 million, extends to 2023

By Wendy Van Sickle

Columbus, Ohio, Oct. 30 – Ruth’s Hospitality Group, Inc. amended its credit facility on Oct. 26 with Wells Fargo Bank, NA as administrative agent, lowering the revolver to $120 million and extending the term by one year to Feb. 2, 2023, according to an 8-K filing with the Securities and Exchange Commission.

The amendment also adjusted the monthly liquidity covenant, added a provision to allow for non-maintenance capital expenditures based on quarterly EBITDA performance and added provisions to address the contemplated phase out of Libor.

The amendment allows for non-maintenance capital expenditures when the leverage ratio is 2.50 to 1.0 or greater with 75% of consolidated EBITDA earned during a fiscal quarter in excess of $7.5 million.

The amounts of the letter-of-credit subfacility and swingline subfacility are unchanged from the existing credit agreement at $5 million each.

In connection with the amendment, Ruth’s repaid $20.2 million in loans, leaving $115 million outstanding under the revolver, exclusive of $4.8 million in letters of credit.

Ruth’s Hospitality is a Winter Park, Fla.-based restaurant company focused on the upscale dining segment.

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