Ruby Tuesday obtains $127.5 million five-year credit facility

By Wendy Van Sickle

Columbus, Ohio, Dec. 21 – Ruby Tuesday, Inc. entered into a five-year credit agreement on Thursday providing for a $115 million term loan and up to $12.5 million of revolving commitments to be used for the issuance of standby letters of credit, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement is in connection with the closing of Ruby Tuesday’s buyout by NRD Capital, a private-equity company.

The credit facility will bear interest at a floating rate of Libor plus 800 basis points with a 1% Libor floor. Additionally, the term loan will bear fixed interest of 2% of the outstanding principal balance, which will compound quarterly and be payable at maturity.

The credit facility matures on Dec. 21, 2022.

Goldman Sachs Specialty Lending Group, LP is the administrative agent, collateral agent and syndication agent.

Ruby Tuesday’s prior credit facility with UBS AG, Stamford Branch, as administrative agent was repaid and terminated.

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

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