Item 1.01 Entry into a Material Definitive Agreement.

On July 27, 2022, El Pollo Loco Holdings, Inc. (the "Company") entered into that certain Credit Agreement (the "2022 Credit Agreement") among El Pollo Loco, Inc. ("EPL"), as borrower (the "Borrower"), the Company and EPL Intermediate, Inc. ("Intermediate") as guarantors, the lenders party thereto and Bank of America, N.A., as administrative agent, swingline lender, and letter of credit issuer, which provides for a $150 million senior secured revolving credit facility (the "2022 Revolver"). The 2022 Revolver includes a sublimit of $15.0 million for letters of credit and a sublimit of $15.0 million for swingline loans. On July 29, 2022, the Company made a $20.0 million payment to the 2022 Revolver and the outstanding balance as of August 4, 2022, was $20.0 million. The proceeds of the 2022 Revolver were used to refinance and terminate the 2018 Revolver and may also be used from time to time for general corporate purposes. The 2022 Revolver will mature on July 27, 2027. The obligations of EPL under the 2022 Credit Agreement and related loan documents are guaranteed by the Company and Intermediate and the obligations of each of the Company, EPL and Intermediate under the 2022 Credit Agreement and related loan documents are secured by a first priority (subject to certain permitted liens) lien on substantially all of their respective assets (subject to certain customary exceptions).

Borrowings under the 2022 Credit Agreement (other than any swingline loans) bear interest, at the Borrower's option, at rates based upon either Term SOFR (as defined in the 2022 Credit Agreement) or a base rate, in each case plus a margin determined in accordance with a lease-adjusted consolidated leverage ratio-based pricing grid. The base rate is calculated as the highest of (a) the federal funds rate plus 0.50%, (b) Bank of America's published prime rate, or (c) Term SOFR with a term of one-month plus 1.00%. Swingline loans under the 2022 Credit Agreement bear interest at the base rate. For base rate loans, the applicable margin may range from 0.25% to 1.25%, and for Term SOFR loans, the applicable margin may range from 1.25% to 2.25%. Borrowings under the 2022 Revolver may be repaid and subsequently reborrowed. The Company is also obligated to pay other customary facility fees for a credit facility for this size and type.

The 2022 Credit Agreement includes customary negative covenants and financial covenants, including, among others, the following (all subject to certain exceptions): a maximum lease-adjusted consolidated leverage ratio, a minimum consolidated fixed charge coverage ratio covenant and limitations on (among others) indebtedness, liens, investments, asset sales, mergers, consolidations, liquidations, dispositions, restricted payments, negative pledges, transactions with affiliates, sale-leaseback transactions and certain prepayments of debt. The 2022 Credit Agreement also includes certain affirmative covenants and events of default.

Substantially simultaneously with entry into the 2022 Credit Agreement, the Company used proceeds of borrowings under the 2022 Revolver to repay all amounts outstanding under, and terminate, that certain Credit Agreement, dated as of July 13, 2018, among EPL, as borrower, the Company and Intermediate, as guarantors, the lenders party thereto and Bank of America, N.A., as administrative agent, swingline lender and letter of credit issuer.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The disclosure set forth above under Item 1.01 is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.



Exhibit
No.        Description
10.1         Credit Agreement, dated as of July 27, 2022, among El Pollo Loco,
           Inc., as borrower, El Pollo Loco Holdings, Inc., as guarantor, the
           other guarantors party thereto, the lenders party thereto and Bank of
           America, as administrative agent, swingline lender and letter of credit
           issuer
104        Cover Page Interactive Data File (embedded within the Inline XBRL
           document)

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