Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers R > Headlines for Ruth’s Hospitality Group Inc. > News item |
Ruth's amends loan, changing covenants, size and pricing
By Sara Rosenberg
New York, Feb. 26 - Ruth's Hospitality Group Inc. amended its credit facility, gaining covenant relief, reducing the revolver to $175 million from $250 million and increasing pricing, according to a news release.
Under the amendment, the fixed-charge coverage ratio was decreased and the maximum leverage ratio was increased beginning with the fourth quarter of 2008 and continuing through the second quarter of 2010, after which these two covenants reset to their original levels.
The amendment also added two new covenants - a minimum EBITDA test and one that places new restrictions on capital expenditures.
Pricing on the facility can now range from Libor plus 250 basis points to 425 bps based on leverage.
Furthermore, there are additional reductions in the revolver size scheduled beginning Dec. 31 through the final maturity date of Feb. 19, 2013.
Wells Fargo is the administrative agent on the deal.
Ruth's is a Heathrow, Fla.-based restaurant company focused exclusively on the upscale dining segment.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.