BJS RESTAURANTS, INC. (NASDAQ:BJRI) Files An 8-K Entry into a Material Definitive Agreement
Item1.01. Entry Into a Material Definitive Agreement
Effective November18, 2016, BJs Restaurants, Inc. (the Company)
entered into a Second Amended and Restated Credit Agreement (the
Credit Agreement) with Bank of America, N.A. (BofA) and JPMorgan
Chase Bank, N.A., and Bank of America Merrill Lynch (as sole Lead
Arranger and sole Book Runner), to which the Company amended and
restated its existing unsecured revolving line of credit (the
Line of Credit) to increase the line to $250,000,000 from
$200,000,000.The Line of Credit may be increased up to
$350,000,000 at the Companys request, with the consent of the
Administrative Agent and the agreement of one or more Lenders,
and upon satisfaction of certain criteria. A general description
of the Line of Credit, as amended, is set forth below and is
qualified in its entirety by reference to the Credit Agreement
(filed herewith as Exhibit 10.1).
The Line of Credit is guaranteed by the Companys subsidiaries and
may be used for working capital and other general corporate
purposes. While the Company is not obligated to utilize the Line
of Credit, it is expected that the Line of Credit will be used
primarily for the issuance of letters of credit in connection
with the Companys insurance program and to fund a portion of the
Companys announced stock repurchase program.
Borrowings under the Line of Credit bear interest at an annual
rate equal to either (a)LIBOR plus a percentage not to exceed
1.75%, or (b)a percentage not to exceed 0.75% above a Base Rate
equal to the highest of (i)the Federal Funds Rate plus 1/2 of 1%,
(ii)BofAs Prime Rate, or (iii)one-month LIBOR plus 1.00%, in
either case depending on the level of lease and debt obligations
of the Company as compared to EBITDA and lease expenses. to the
Line of Credit, the Company will be required to pay certain
customary fees and expenses associated with maintenance and use
of the Line of Credit including letter of credit issuance fees
and unused commitment fees. Interest on the Line of Credit is
payable monthly and the Line of Credit expires, and all
borrowings thereunder must be repaid on or before, November18,
2021.
The Line of Credit contains certain representations and
warranties, affirmative and negative covenants and events of
default that are customary for credit arrangements of this type,
including covenants which restrict the Companys ability to, among
other things, create liens, borrow money (other than purchase
money indebtedness and trade credit, lease obligations incurred
in the ordinary course, and similar ordinary course liabilities),
and engage in mergers, consolidations, significant asset sales
and certain other transactions. The Company also agreed to
maintain specified fixed charge coverage and overall debt ratios
which, if not met, would place additional customary restrictions
on the Company, including the ability to redeem or repurchase
stock or pay dividends.
Item2.03 Creation of a Direct Financial Obligation or
an Obligation under an Off-Balance Sheet Arrangement of a
Registrant
See the description contained in Item1.01 above which is
incorporated herein by this reference.
Item9.01. Financial Statements and
Exhibits
| Exhibit10.1 |
Second Amended and Restated Credit Agreement, dated November18, 2016. |
About BJ’S RESTAURANTS, INC. (NASDAQ:BJRI)
BJ’s Restaurants, Inc. owns and operates restaurants. The Company’s restaurants are operated as a BJ’s Restaurant & Brewery, a BJ’s Restaurant & Brewhouse, a BJ’s Pizza & Grill and a BJ’s Grill restaurant. Its menu features deep-dish pizza, craft beers and other beers, as well as a selection of appetizers, entrees, pastas, sandwiches, specialty salads and desserts, including its Pizookie dessert. Its craft beer is produced at various BJ’s Restaurant & Brewery locations, as well as by independent third-party brewers using its recipes. It owns and operates over 170 restaurants located in the over 20 states. The Company offers approximately 30 guest domestic and imported craft beers on tap, in addition to a selection of bottled beers in its restaurants. It also produces non-alcoholic craft sodas that are sold in its restaurants. Its craft sodas include root beer, cream, orange and black cherry soda. Its BJ’s Pizza & Grill restaurants are smaller format and full-service restaurants. BJ’S RESTAURANTS, INC. (NASDAQ:BJRI) Recent Trading Information
BJ’S RESTAURANTS, INC. (NASDAQ:BJRI) closed its last trading session up +0.45 at 39.35 with 197,095 shares trading hands.
