Ruby Tuesday obtains $50 million senior secured revolving facility

By Tali David

Minneapolis, Dec. 9 - Ruby Tuesday, Inc. entered into a $50 million four-year revolving credit agreement on Dec. 3, according to an 8-K filed with the Securities and Exchange Commission.

The company has the option, subject to certain conditions, to increase the facility by up to $35 million.

The senior credit facility, which was obtained to provide capital for general corporate purposes, replaced a previous $200 million five-year credit facility that was set to expire in December 2015. The terms of the senior credit facility provide for a $25 million sublimit for the issuance of standby letters of credit.

Borrowings bear interest at Libor plus 250 basis points to 350 bps. There is a commitment fee for the account of each lender at a rate ranging from 40 bps to 75 bps, depending on the total debt-to-EBITDAR ratio.

The facility is scheduled to terminate no later than Dec. 3, 2017.

Bank of America, NA is the administrative agent, and Wells Fargo Bank, NA and Regions Bank are the co-syndication agents.

Ruby Tuesday is a Maryville, Tenn.-based restaurant company.

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