Ruth's Hospitality borrows remaining $51.2 million under revolver

By Sarah Lizee

Olympia, Wash., March 18 – Ruth's Hospitality Group, Inc. borrowed the remaining $51.2 million available under its revolving credit facility on Monday, bringing the total outstanding amount to $120 million, according to an 8-K filing with the Securities and Exchange Commission.

The company said it increased borrowings as a precautionary measure in order to increase its cash position and preserve financial flexibility in light of current uncertainty in the global markets resulting from the Covid-19 outbreak.

The proceeds are being held on the company’s balance sheet, resulting in total cash and cash equivalents of $54.7 million as of March 16.

Proceeds may in the future be used for working capital, general corporate or other purposes permitted by the credit agreement.

Wells Fargo Bank, NA is the administrative agent, and Wells Fargo Securities, LLC is the lead arranger and bookrunner.

The revolver may be increased up to a maximum of $150 million.

The current interest rate for borrowings is 2.55%.

Ruth's Hospitality is a Winter Park, Fla.-based restaurant company focused on the upscale dining segment.

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