Chipotle gets $600 million 364-day revolver at Libor plus 150 bps

By Sarah Lizee

Olympia, Wash., May 8 – Chipotle Mexican Grill, Inc. entered into a new $600 million senior unsecured 364-day revolving credit agreement with JPMorgan Chase Bank, NA as administrative agent on Friday, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan, Morgan Stanley MUFG Loan Partners, LLC, Truist Bank and Fifth Third Bank, NA acted as joint bookrunners and joint lead arrangers.

The revolver includes a letter of credit sub-facility up to $20 million.

The revolver will mature on May 7, 2021.

Borrowings bear interest at Libor plus 150 basis points, which is subject to adjustment to 150 bps to 225 bps based on the company’s total leverage ratio, with Libor being no less than 1%.

The company will pay a commitment fee on undrawn amounts under the revolving facility equal to 62.5 bps.

Financial covenants require that the company maintain a maximum total leverage ratio of 3x and a minimum fixed charge coverage ratio of 1.5x, each as of the last day of each fiscal quarter and restrict the company’s capital expenditures through Dec. 31 to $350 million and thereafter permit unlimited capital expenditures subject to pro forma compliance with a maximum total leverage ratio of 2.75x.

The chain of fast casual restaurants is based in Newport Beach, Calif.

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