Ruby Tuesday amends loan, modifying covenants, raising pricing

By Sara Rosenberg

New York, May 22 - Ruby Tuesday Inc. amended its credit facility, revising the minimum fixed charge coverage and maximum adjusted total debt to EBITDAR ratios, and increasing pricing, according to an 8-K filed with the Securities and Exchange Commission Thursday.

The minimum fixed charge coverage ratio is set at 2.25 to 1.0 from the amendment effective date through March 1, 2011 and 2.50 to 1.0 thereafter.

The maximum adjusted total debt to EBITDAR ratio is set at 4.50 to 1.0 from the amendment effective date through June 3, 4.60 to 1.0 from June 4 through Sept. 2, 4.50 to 1.0 from Sept. 3 through Dec. 2, 4.25 to 1.0 from Dec. 3 through Sept. 1, 2009, 4.00 to 1.0 from Sept. 2, 2009 through March 2, 2010, 3.75 to 1.0 from March 3, 2010 through March 1, 2011 and 3.50 to 1.0 after that.

Pricing on the credit facility can now range from Libor plus 100 basis points to 350 bps, with the spread set at Libor plus 350 bps as of the amendment effective date.

In addition, the amendment provides for required debt amortization and adjustments to prepayment obligations.

Also, under the amendment, the company can't repurchase stock or pay dividends until certain leverage thresholds for two consecutive fiscal quarters are achieved.

The amendment was completed on May 21.

Bank of America is the administrative agent on the deal.

Ruby Tuesday is a Maryville, Tenn.-based developer, operator and franchiser of casual dining restaurants.

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