Cracker Barrel Old Country Store, Inc. Enters into Sixth Amendment to the Credit Agreement
June 16, 2021 at 07:11 am EDT
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On June 15, 2021, concurrently with the pricing of the Notes, Cracker Barrel Old Country Store, Inc. entered into a Sixth Amendment to the Credit Agreement dated as of September 5, 2018, by and among the Company, the subsidiary guarantors named therein, the several banks and other financial institutions and lenders from time to time party thereto and Bank of America, N.A., as administrative agent and collateral agent, to permit the issuance of the Notes, the convertible note hedge transactions and the warrant transactions. The Sixth Amendment: confirms that the issuance, conversion, exchange and settlement of the Notes and the concurrent convertible note hedge and warrant transactions will not constitute a prohibited asset disposition, investment, restricted payment or debt repayment, provided that (i) payments in excess of the original principal (or notional) amount of the Notes and (ii) any payments of cash in settlement of the warrant transaction (to the extent settlement of the Notes is permitted by issuance of shares of the Company’s common stock) will require pro forma compliance with financial covenants after giving effect to such payment; provides that the dividend payment made in September 2020 does not constitute usage of the basket for dividends and repurchases made in the fiscal year ending July 30, 2021; terminates the existing waivers for the financial covenants; terminates the related limitations under the Credit Agreement on the use of the accordion, permitted acquisitions, certain investments, certain restricted payments and capital expenditures; terminates the minimum liquidity requirement; and reinstates the testing of the financial covenants under the Credit Agreement.
Cracker Barrel Old Country Store, Inc. is engaged in the operation and development of the Cracker Barrel Old Country Store concept (Cracker Barrel). The Companyâs format of its stores consists of a trademarked rustic old country-store design offering a full-service restaurant menu that features home-style country food and a variety of decorative and functional items, such as rocking chairs, holiday and seasonal gifts, toys, apparel, cookware and foods. Its restaurants serve breakfast, lunch and dinner daily and offer dine-in, pick-up and delivery services. Its breakfast items include juices, eggs, pancakes, meats, grits, and a variety of biscuit specialties, such as gravy and biscuits and country ham and biscuits. Its lunch and dinner items include fried and grilled chicken, chicken and dumplings, chicken pot pie, meatloaf, country fried steak, pork chops and others. It operates over 661 Cracker Barrel stores in 45 states and 59 Maple Street Biscuit Company stores in 10 states.