Business Context and Reporting Period
Company: Red Robin Gourmet Burgers, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: December 14, 2012
Event: Entry into a new Credit Agreement and termination of the prior credit facility.
Key Financial Metrics and Debt Structure
This filing details a refinancing transaction rather than operational financial results. Key debt metrics include:
- Debt Repaid: Approximately $122 million in outstanding borrowings, accrued interest, and fees under the terminated facility dated May 6, 2011.
- New Credit Facility: A $225 million revolving line of credit.
- Expansion Option: An option to increase the facility by up to an additional $100 million, subject to lender participation.
- Collateral: Borrowings are secured by substantially all assets of the borrower (Red Robin International, Inc.) and guarantors.
Material Changes Versus Prior Period
The primary material change is the replacement of the existing credit facility with a new Credit Agreement effective December 14, 2012. The new agreement increases the available revolving credit capacity from the amount previously outstanding (approx. $122 million) to $225 million, with potential for further expansion.
Guidance, Outlook, and Management Commentary
Permitted Uses of Funds: The new facility is available to refinance existing indebtedness, finance restaurant construction costs, pay associated fees, and provide working capital and general corporate requirements, including permitted acquisitions and redemption of capital stock.
Regulatory Disclosure: A press release regarding this agreement was issued on December 17, 2012, under Regulation FD.
Important Facts for Investor Verification
- Verify the specific interest rates and fees associated with the new $225 million Credit Agreement (Exhibit 10.1).
- Confirm the financial covenants and restrictions imposed by the new Security Agreement (Exhibit 10.2).
- Review the press release (Exhibit 99.1) for any additional commentary on liquidity strategy or future capital allocation.
- Note that the filing text does not provide current revenue, profit, or cash flow figures; these are operational metrics not covered in this specific 8-K.