Red Robin Announces New $225 million Credit Agreement
GREENWOOD VILLAGE, Colo. -- December 17, 2012
Red Robin International, Inc. (“RRI” or the “Company”), a wholly owned
subsidiary of Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB), today announced
that it has closed on a new $225 million credit agreement. The new credit
facility, a five-year $225 million revolving line of credit, replaces a
facility comprised of a $150 million term loan and $100 million 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 $100 million in the future, subject to lender participation. As
of the end of the Company’s fiscal third quarter on September 30, 2012, the
balance outstanding under the prior credit facility was $121.9 million.
“We’re very pleased with the execution of our new credit agreement, which
reflects the further strengthening of Red Robin’s financial position and
improvements in the credit markets,” said Stuart Brown, Red Robin Gourmet
Burgers, Inc.’s chief financial officer. “This new facility provides Red Robin
with additional financial flexibility to deliver on our strategic plan while
extending our debt maturities.”
In conjunction with the closing of the credit agreement, the Company
anticipates that it will record a non-cash, pre-tax charge of approximately
$2.9 million, comprised of a write-off of unamortized 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.
The transaction was arranged by Wells Fargo Bank, N.A. as Administrative
Agent; Bank of America, N.A. as Syndication Agent; BBVA Compass and U.S. Bank
National Association as Documentation Agents; Rabobank International as Senior
Managing Agent; and Wells Fargo Securities, LLC and Merrill Lynch, Pierce,
Fenner & Smith Incorporated as Co-Lead Arrangers and Co-Bookrunners.
About Red Robin International, Inc.
Red Robin International, Inc., a wholly owned subsidiary of Red Robin Gourmet
Burgers, Inc., is a casual dining restaurant chain famous for serving more
than two dozen craveable, high-quality burgers with Bottomless Steak Fries® in
a fun environment welcoming to guests of all ages. In addition to its many
gourmet burger offerings, Red Robin serves a wide variety of salads, soups,
appetizers, entrees, desserts and signature Mad Mixology® Beverages. There are
more than 470 Red Robin^® restaurants located across the United States and
Canada, including corporate-owned locations and those operating under
franchise agreements. Red Robin… YUMMM^®! Connect with Red Robin on Facebook
Certain information and statements contained in this press release, including
those regarding the Company’s capital structure, ability to execute its
operating plan, anticipated financial flexibility, anticipated non-cash
charges and other statements that are not statements of historical fact, are
forward-looking statements within the meaning of federal securities laws.
These statements may be identified, without limitation, by the use of
forward-looking terminology such as “anticipates”, “will” or comparable terms
or the negative thereof. Such statements are based on management’s current
estimates, assumptions that management believes to be reasonable, and
currently available competitive, financial, and economic data as of the date
hereof and we undertake no obligation to update any such statements to reflect
subsequent changes in events or circumstances. Forward-looking statements are
inherently uncertain and subject to a variety of events, factors and
conditions, many of which are beyond the control of the Company and not all of
which are known to the Company, including, without limitation those risk
factors described from time to time in the Company's reports on Form 10-K and
10-Q filed with the SEC.
Red Robin International, Inc.
Kevin Caulfield, 303-846-5470
Senior Director of Communications
Stuart Brown, 303-846-6000
Chief Financial Officer
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