Ruby Tuesday replaces facility with $320 million five-year revolver

By Angela McDaniels

Tacoma, Wash., Dec. 7 - Ruby Tuesday, Inc. entered into a $320 million five-year revolving credit agreement on Dec. 1, according to an 8-K filing with the Securities and Exchange Commission.

The company has the option to increase the revolver to $370 million.

The interest rate is adjusted Libor plus 125 basis points to 225 bps, depending on leverage.

There is a $40 million swingline sub-commitment and a $50 million letter-of-credit sub-commitment.

Bank of America, NA is the administrative agent.

The new revolver replaces a five-year facility that was entered into in February 2007 and contains leverage, fixed charge coverage and minimum net worth covenants that are substantially similar to those contained in the previous facility.

At closing, the company drew $203 million and obtained $20 million of letters of credit. The proceeds were used to repay the outstanding borrowings under the old facility and replace letters of credit.

Maryville, Tenn.-based Ruby Tuesday develops, operates and franchises casual dining restaurants.

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