Ruth's trims revolver to $100 million, cuts rate and extends to 2017

By Susanna Moon

Chicago, Feb. 21 - Ruth's Hospitality Group, Inc. reduced the size of its revolving loan facility to $100 million and lowered the interest rate on the loans by 75 basis points. The facility was extended to Feb. 14, 2017.

Interest on the loans is now Libor pus 200 bps, based on leverage, with a spread of 200 bps to 275 bps. The commitment fee was reduced to 20 bps, with a range of 25 bps to 35 bps.

The company amended and restated its credit agreement last Tuesday 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 facility was downsized from $129.6 million.

The facility also was amended to

• Boost the company's ability to incur capital leases and other general liens, in both cases, to $10.0 million from $2.5 million;

• Lower the fixed-charge coverage ratio to 1.25 times from 1.35 times and the maximum leverage ratio to 2.5 times from 3.75 times;

• Limit the company's ability to make junior stock payments, which include both cash dividend payments and repurchases of common or preferred stock, to $100.0 million; and

• Raise the company's ability to make capital expenditures to (a) an amount not to exceed 75% of EBITDA if its leverage ratio is equal to or greater than 1.5 times or (b) an unlimited amount if its leverage ratio is less than 1.5 times.

Ruth's is a Heathrow, Fla.-based restaurant company focused on upscale dining.

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