NASHVILLE Tenn. O’Charley’s Inc. said Wednesday it has amended its revolving credit facility that was set to expire next year, reducing the amount to $45 million, extending its maturity and changing covenants for additional flexibility.
The operator or franchisor of 372 restaurants under such casual-dining brands as O’Charley’s, Stoney River Legendary Steaks and Ninety Nine Restaurants, O’Charley’s closed the deal with Bank of America, Regions Bank and Wells Fargo Securities, it said Wednesday. The company’s new $45 million facility was reduced from $83 million, and will now mature in 2013, rather than October of next year.
Amended terms allow O’Charley’s to repurchase its 9-percent senior subordinated notes, which had been prohibited in the prior credit facility. In addition, collateral for the deal, which originally included mortgages on 88 corporate restaurants and O’Charley’s corporate offices, has been reduced to mortgages on 47 restaurants. The amended facility also will allow sale-leaseback transactions, which were not permitted under the prior terms.
“By extending the maturity, permitting bond repurchases and making additional collateral available for other purposes, we believe that this amended and restated facility significantly enhances our financial flexibility,” said Larry Hyatt, O’Charley’s chief financial officer.
The company said it expects to book a first-quarter charge of $500,000 in additional interest expenses associated with financing costs related to the prior bank facility.
Contact Elissa Elan at [email protected].