Noodles increases revolver to $125 million, eliminates term loan

By William Gullotti

Buffalo, N.Y., July 27 – Noodles & Co. amended and extended its credit agreement on Wednesday with U.S. Bank NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amendment increased the size of the agreement to $125 million from $100 million and extended the maturity to July 27, 2027 from Nov. 20, 2024.

The revolver has a $15 million sublimit for letters of credit and a $10 million sublimit for swingline loans. The facility size may be increased by up to $35 million, in $5 million increments, in the form of incremental term loans.

Borrowings from the amended revolver bear interest at SOFR plus a margin ranging from 150 basis points to 250 bps. There is also a commitment fee that ranges from 20 bps to 35 bps. Margins and fees are determined by the company’s consolidated total lease adjusted leverage ratio.

The amendments also eliminated the existing term loan as well as the principal amortization components from the credit facility.

At closing, the new revolver had $89.8 million of available for borrowings with no principal payments due until maturity.

In addition to serving as administrative agent, U.S. Bank is also the letter-of-credit issuer, swingline lender, lead arranger and bookrunner for the amended facility.

The restaurant chain is based in Broomfield, Colo.

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