Fiesta enters $150 million five-year revolver, draws $75 million

By Marisa Wong

Morgantown, W.Va., Dec. 4 – Fiesta Restaurant Group, Inc. entered into a loan agreement on Thursday for an up to $150 million revolving credit facility, according to an 8-K filed Monday with the Securities and Exchange Commission.

JPMorgan Chase Bank, NA and Wells Fargo Securities, LLC are joint bookrunners and joint lead arrangers, with JPMorgan Chase Bank as administrative agent and lender and Wells Fargo Bank, NA as syndication agent and lender.

The revolver includes an up to $15 million sublimit for letters of credit.

Fiesta may request incremental revolving credit increases of up to $50 million total.

The facility matures on Nov. 30, 2022.

Borrowings bear interest at Libor plus an applicable margin of 175 basis points to 270 bps, based on Fiesta’s adjusted leverage ratio. The applicable margin was 225 bps as of the closing date.

The loan agreement requires Fiesta to meet some financial ratios, including a fixed-charge coverage ratio and adjusted leverage ratio.

Fiesta borrowed $75 million at closing to repay outstanding borrowings under its loan agreement dated Dec. 11, 2013. The prior facility was terminated on Nov. 30.

Fiesta is a restaurant chain based in Dallas.

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