Del Frisco’s secures $440 million of senior secured credit facilities

By Sarah Lizee

Olympia, Wash., June 28 – Del Frisco’s Restaurant Group, Inc. entered into a new credit agreement on Wednesday with JPMorgan Chase Bank, NA as administrative agent that provides for $390 million of senior secured term loans and $50 million of senior secured revolving credit commitments, according to an 8-K filing with the Securities and Exchange Commission.

Term loan borrowings initially bear interest at Libor plus 475 basis points. Revolver borrowings bear interest at Libor plus 350 bps, with the margin ranging from 250 bps to 350 bps, depending on the consolidated total net leverage ratio.

The commitment fee ranges from 35 bps to 50 bps, also depending on the consolidated total net leverage ratio.

Revolving commitments mature on June 27, 2023, and the term loans mature on June 27, 2025.

The company is required to repay 1% of the principal amount of the term loans annually.

The revolving credit commitments have a financial covenant limiting the borrower to a maximum consolidated total net leverage ratio of 6.75 to 1, stepping down to 6 to 1 on Dec. 31, to 5.25 to 1 on Dec. 31, 2019, to 4.75 on Dec. 31, 2020 and to 4 to 1 on Dec. 31, 2021.

JPMorgan and Citizens Bank, NA are joint lead arrangers and bookrunners.

As previously reported, Del Frisco’s received a commitment in May for the $440 million of senior secured credit facilities to fund its acquisition of Barteca Restaurant Group. The acquisition was completed for $325 million in cash.

Del Frisco’s is an Irving, Texas-based restaurant company. Barteca is a Norwalk, Conn.-based restaurant company.

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