Red Robin Completes Refinancing as Part of Balance Sheet Strengthening Plan
Red Robin Gourmet Burgers (NASDAQ: RRGB) has completed the refinancing of its secured credit facility, a key step in its First Choice Plan to strengthen its financial foundation. The new $115 million Credit Facility includes a $25 million revolving line and a $90 million term loan with a five-year maturity through 2031. This follows the sale of 108 company-owned restaurants for approximately $89.4 million, part of refranchising transactions that are expected to generate up to $96 million in total proceeds by year-end. The refinancing allows Red Robin to repay its previous credit agreement and provides flexibility for working capital needs, including potential acquisitions or capital expenditures. The interest rate is based on SOFR plus 275-350 basis points depending on leverage ratios. CEO Dave Pace emphasized the importance of this step in executing the First Choice Plan and enhancing financial stability. JPMorgan Chase Bank led the facility as Administrative Agent, with Texas Capital Bank serving as Documentation Agent.
Tickers: $RRGB
Topics: capital structure debt refinancing franchising transactions