Red Robin enters $400 million replacement revolving line of credit

By Wendy Van Sickle

Columbus, Ohio, July 5 – Red Robin Gourmet Burgers, Inc. replaced its existing credit facility with a new five-year $400 million revolving line of credit on Thursday, according to an 8-K filing with the Securities and Exchange Commission.

Wells Fargo Securities, LLC and Bank of America Merrill Lynch are the co-lead arrangers and co-bookrunners. Wells Fargo Bank, NA is the administrative agent; Bank of America, NA is the syndication agent; Compass Bank, U.S. Bank NA and Cooperatieve Rabobank, UA, New York Branch are documentation agents.

Under the new credit agreement, the borrower maintains the option to increase the credit facility by up to an additional $100 million.

The facility matures on June 30, 2021 and includes two one-year extension options.

Pricing is based on the company’s leverage ratio. The applicable margin for Libor loans and the letter-of-credit fee ranges from 125 basis points to 225 bps. The commitment fee ranges from 20 bps to 40 bps. Initially, the applicable margin is 175 bps, and the commitment fee is 30 bps.

Proceeds can be used to refinance existing debt, finance restaurant construction costs and provide working capital.

Effective Thursday, Red Robin terminated its existing credit facility dated July 2, 2014. In connection with the termination and borrowings under the new facility, the company paid off all outstanding amounts under the prior facility.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.