Red Robin signs $225 million five-year replacement credit facility

Chicago, March 10 – Red Robin Gourmet Burgers, Inc. entered into a new $225 million five-year credit agreement on Friday with Fortress Credit Corp. as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

In the agreement there is a $25 million revolver and a $200 million term loan.

There is also the option for an additional $40 million of borrowings.

The maturity date is March 4, 2027.

The term loan has 1% amortization.

SOFR loans for both the term loan and the revolver will have a margin of either 600 basis points or 650 bps, based on whether the leverage is greater than 3x or less than 3x, respectively.

The commitment fee is 50 bps.

Red Robin International, Inc. is the listed borrower.

Proceeds will be used to refinance certain debt and provide for working capital and general corporate requirements of the company.

JPMorgan Chase Bank, NA is the lead arranger and bookrunner.

In connection with the new credit facility, Red Robin terminated its credit agreement from Jan. 10, 2020.

Red Robin is a Greenwood Village, Colo.-based casual dining restaurant chain.

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