Red Robin amends credit agreement including increase in pricing

Chicago, Nov. 10 – Red Robin Gourmet Burgers, Inc. and Red Robin International, Inc. entered into a third amendment to the credit agreement that lists Wells Fargo Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Pricing is increased from Nov. 9 to April 17, 2022 to Libor plus 600 basis points with a 1% Libor floor.

After April 17, 2022, interest will be Libor plus 650 bps, with a 1% Libor floor.

The 75 bps utilization fee from Feb. 25 to Nov. 9 was due on the signing date.

The revolver will be reduced to $75 million on the last day of the fiscal quarter ending on or about April 17, 2022.

Revolver payments must be made when company’s consolidated cash on hand exceeds $30 million at any time.

Closed on Nov. 9, the amendment waives the lease adjusted leverage ratio financial covenant for the fiscal quarter of 2021.

The maximum leverage permitted for purposes of the leverage ratio covenant is increased for the next four quarters, starting with the fourth fiscal quarter of 2021.

There are also now Libor transition provisions in the agreement.

On Nov. 1, the company had $53 million outstanding on the revolver, $121.5 million under the term loans and LOC obligations not less than $8.76 million.

JPMorgan Chase Bank, NA, JPMorgan Chase Bank, NA, Toronto Branch, Bank of America, NA and PNC Bank, NA are lenders with Wells Fargo.

Red Robin is a Greenwood Village, Colo.-based casual dining restaurant chain.

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