Brinker International, Inc., Brinker Restaurant Corporation, Brinker Florida, Inc, Brinker Texas, Inc. and Brinker International Payroll Company, L.P. Enters into a Sixth Amendment to Credit Agreement
May 06, 2020 at 04:22 pm EDT
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Brinker International, Inc. Brinker Restaurant Corporation, Brinker Florida, Inc., Brinker Texas, Inc. and Brinker International Payroll Company, L.P. entered into a sixth amendment to credit agreement which amends the company’s credit agreement dated as of March 12, 2020 with a group of banks for which Bank of America, N.A. is acting as administrative agent which governs the company’s $1.0 billion revolving credit facility. Capitalized terms not defined in this description shall have the meanings given them in the existing credit agreement. The credit agreement dated as of March 12, 2015 was more specifically described in Item 1.01 of the company’s current report on Form 8-K, filed March 12, 2015, and the existing credit agreement was more specifically described in Note 10 of the company’s quarterly report on Form 10-Q, filed April 29, 2020, both of which descriptions are incorporated by reference. The sixth amendment amended the existing credit agreement to, among other matters eliminate the $800 million cap on the company’s credit facility borrowing capacity that was imposed by the fifth amendment to credit agreement dated as of March 31, 2020 thereby increasing the company’s borrowing capacity to $1.0 billion, temporarily suspend the requirement to comply with all financial covenants under the existing credit agreement through the fiscal quarter ending December 23, 2020, provided, however that the company will be required to maintain a maximum leverage ratio and minimum fixed charge coverage ratio as set forth below commencing with, and following, the fiscal quarter ending March 24, 2021, impose a minimum liquidity covenant of at least $175 million from the effective date of the sixth amendment until the termination of the restricted period and from the effective date of the sixth amendment until the termination of the restricted period, fix the interest rate on the aggregate principal amount of the outstanding borrowings under the amended credit agreement at LIBOR plus 2.35% and the facility commitment fee at 40 basis points.
Brinker International, Inc. is a casual dining restaurant company. The Company owns, develops, operates and franchises the Chilis Grill & Bar (Chilis) and Maggianos Little Italy (Maggianos) restaurant brands, as well as a virtual brand, Its Just Wings. The Company operates through two segments: Chiliâs and Maggianoâs. The Chiliâs segment includes the Company-owned Chiliâs restaurants, which are principally located in the United States, within the full-service casual dining segment of the industry. The Chiliâs segment also has Company-owned restaurants in Canada, and franchised locations in the United States, other countries and two United States territories. The Maggianoâs segment includes the Company-owned Maggianoâs restaurants in the United States as well as its domestic franchise business. The Company owns, operates or franchises approximately 1,600 restaurants in approximately 29 countries and two United States territories.
Brinker International, Inc., Brinker Restaurant Corporation, Brinker Florida, Inc, Brinker Texas, Inc. and Brinker International Payroll Company, L.P. Enters into a Sixth Amendment to Credit Agreement