SEC Filing Summary: Red Robin Gourmet Burgers, Inc. (8-K)
Business Context and Reporting Period
This Form 8-K Current Report was filed by Red Robin Gourmet Burgers, Inc. on May 9, 2011, regarding events occurring on May 6, 2011. The filing discloses the entry into a material definitive agreement involving a restructuring of the company's credit facilities.
Key Financial Metrics and Debt Structure
The filing details a new Amended and Restated Credit Agreement with the following terms:
- Total Facility Size: $250 million aggregate commitment.
- Term Loan: $150 million.
- Revolving Line of Credit: $100 million.
- Maturity Date: Extended to May 6, 2016.
- Expansion Option: The facility may be increased by up to an additional $100 million subject to lender participation.
- Revolving Extension Option: The maturity of the revolving line may be extended for up to two additional one-year periods.
- Collateral: Borrowings are secured by substantially all assets of the borrower and guarantors.
The filing does not provide specific values for revenue, profit, cash flow, or margins, as this report focuses on debt restructuring rather than periodic financial performance.
Material Changes Versus Prior Period
Compared to the existing credit facility dated June 15, 2007, the new agreement results in the following changes:
- Reduction in Commitments: Aggregate loan commitments decreased from $300 million to $250 million.
- Extension of Maturity: The maturity date was extended from the original 2007 term to May 6, 2016.
- Permitted Uses: Funds are designated for restaurant construction, refinancing existing indebtedness, working capital, general corporate requirements, permitted acquisitions, and redemption of capital stock.
Management Commentary, Risks, and Contingencies
Management announced the agreement via a press release on May 9, 2011. The agreement involves Red Robin International, Inc. as the borrower, with the Company and certain subsidiaries acting as guarantors. The filing notes that the information in the press release is not deemed "filed" for purposes of Section 18 of the Exchange Act unless expressly referenced. No specific risks or contingencies beyond the standard obligations of the credit agreement are detailed in this summary text.
Key Facts for Investor Verification
- Verify the specific interest rate margins and fees associated with the new $250 million facility.
- Confirm the exact amount of existing indebtedness being refinanced under the new terms.
- Review the covenants and financial maintenance requirements within the attached Credit Agreement (Exhibit 10.1).
- Assess the impact of the reduced credit facility ($50 million decrease) on future expansion plans.
- Check the utilization rate of the $100 million revolving line of credit at the time of signing.