The new credit facility, a five-year $225m revolving line of credit, replaces a facility comprised of a $150m term loan and $100m revolving line of credit that was scheduled to mature in June 2016.
The refinancing resulted in a 50 basis point reduction in the spread over Libor based on leverage as of the end of the third fiscal quarter 2012. The amended credit agreement allows RRI to increase the credit facility by up to an additional $100m in the future, subject to lender participation.
As of the end of the company’s fiscal third quarter on 30 September 2012, the balance outstanding under the prior credit facility was $121.9m.
In conjunction with the closing of the credit agreement, the company anticipates that it will record a non-cash, pre-tax charge of approximately $2.9m, comprised of a write-off of unamortised fees from the prior credit agreement and a charge related to the re-designation of an interest rate swap in the fourth fiscal quarter 2012.
Source: Red Robin
© FoodBev Media Ltd 2024