The company has modified its loan agreement as it chips away at its $192 million debt
Pinstripes is the only restaurant company that went public in 2024, doing so in January via a special purpose acquisition company deal (SPAC).
The company has since struggled on the market, however. In September, chief executive officer Dale Schwartz warned of corporate layoffs to reduce debt. Sales declined through the summer months, and its share price has declined by more than 90% since its Wall Street debut. In mid-September, Pinstripes shares fell under $1 and have remained there since, with its share price closing Friday at 47 cents, risking a delisting from the New York Stock Exchange.
According to an 8-K filing with the Securities and Exchange Commission earlier this month, the company has also taken on more than $192 million in debt. The filing notes that Pinstripes has modified its existing loan agreement, which is through Oaktree Fund Administration and associated lenders. The amendment includes a $6 million tranche (security) 2 loan, while the interest rate on term loans has been adjusted.
Additionally, Pinstripes has added another amendment with Silverview Credit Partners to reduce the interest rate on term loans to 12.5% per year for six months and amended its loan agreement with GCCP II Agent LLC to allow for 3% of the interest on the loan to be payable in kind or cash, while decreasing quarterly payments through the end of this year. With these agreements added, lenders have agreed to forbear defaults until the end of February.
Pinstripes’ current market capitalization is $23.9 million. The company has been on a growth spurt the past few years, ending 2023 with $92.4 million in sales, a 5.6% year-over-year increase, according to Technomic data. During its most recent quarter, ended Oct. 13, Pinstripes’ revenue increased 7.5%, to $26.5 million, compared to the prior year. However, its operating loss was $7.9 million, while its net loss was $9.3 million.
In a statement, Schwartz said the company continues to make progress on rationalizing its cost structure and has removed an annualized $15 million in costs at the store and corporate level.
“We are equally focused on strengthening our balance sheet and raising additional capital to fund our operations and expansion plans, and we continue to believe that our high-quality, connection-oriented dining, entertainment and event venues attractively position us to drive long-term shareholder value,” he said.
There are 18 locations listed on Pinstripes’ website, with four additional ones listed as “coming soon.” The company ended 2023 with 17 locations, according to Technomic.
Contact Alicia Kelso at [email protected]
