Ruth’s Hospitality restates for $140 million revolver maturing in five years

By Wendy Van Sickle

Columbus, Ohio, Oct. 20 – Ruth’s Hospitality Group, Inc. amended and restated its credit agreement on Oct. 18 with Wells Fargo Bank, NA as administrative agent and Wells Fargo Securities, LLC as lead arranger and bookrunner, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement amends and restates the company’s $110 million credit facility dated Feb. 2, 2017 to provide for a $140 million revolver that matures on Oct. 18, 2026. The existing credit facility had a maturity date of Feb. 2, 2023.

There is a $10 million subfacility for letters of credit and a $5 million subfacility for swingline loans.

Borrowings bear interest at Libor plus 150 basis points to 225 bps with the spread based on leverage.

Effective for the quarter ended Sept. 26, the amended credit agreement returns the financial covenants to a quarterly minimum adjusted fixed-charge coverage ratio of 1.25x and a maximum consolidated leverage ratio of 3x, which thresholds existed under the 2017 credit agreement prior to the onset of the Covid-19 pandemic.

The amended credit agreement also removed restrictions on non-maintenance capital expenditures.

Proceeds will be used for capital expenditures, to refinance existing debt and for working capital and general corporate purposes.

Upon entry into the amended agreement, $70 million was drawn on the revolver and $4.7 million of letters of credit had been issued thereunder.

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

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