Fiesta Restaurant Group trims revolving commitments to $120 million

By Sarah Lizee

Olympia, Wash., July 16 – Fiesta Restaurant Group, Inc. amended its credit agreement on July 10 with JPMorgan Chase Bank, NA as administrative agent, lowering the maximum commitments available for revolving borrowings by $30 million to $120 million, according to an 8-K filing with the Securities and Exchange Commission.

The commitment will be further reduced by $15 million to $105 million on Jan. 3, 2021 and by $10 million to $95 million on April 4, 2021.

The amendment also provides that the company is not required to be in compliance with the adjusted leverage ratio and fixed charge coverage ratio from July 10 through April 3, 2021.

The company is required to be in compliance with the adjusted leverage ratio and fixed charge coverage ratio beginning with the fiscal quarter ending April 4, 2021.

Following the amendment period, the company will be permitted to exercise equity cures with respect to compliance with the adjusted leverage ratio and fixed charge coverage ratio provided that, subject to some conditions.

The second amendment also provides that the company must maintain minimum liquidity of $40 million from the second amendment effective date through Sept. 27, $30 million from Sept. 28 through Jan. 3, 2021 and $25 million on Jan. 4, 2021 and thereafter.

Interest is Libor plus 500 basis points with a 1% Libor floor. There is a 50 bps commitment fee.

Fiesta is a restaurant chain based in Dallas.

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