Carrols Restaurant Group, Inc. (NASDAQ:TAST) Files An 8-K Entry into a Material Definitive Agreement
ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
On April 16, 2020, Carrols Restaurant Group, Inc. (the “Company”) entered into the Fourth Amendment to Credit Agreement (the Fourth Amendment”) among the Company, as borrower, certain subsidiaries of the Company (collectively, the “Guarantors”), as guarantors, Wells Fargo Bank, National Association (the “Administrative Agent”), as administrative agent, and the lenders party thereto as further described in “Item 2.03. Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant” which is incorporated by reference in this Item 1.01.
ITEM 2.03. CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT.
On April 16, 2020, the Company and the Guarantors entered into the Fourth Amendment. The Fourth Amendment amends the Credit Agreement dated as of April 30, 2019 among the Company, the Guarantors, the Administrative Agent and the lenders party thereto (as previously amended by the First Amendment to Credit Agreement dated as of December 13, 2019 among the Company, the Guarantors, the Administrative Agent and the lenders party thereto, the Second Amendment to Credit Agreement dated as of March 25, 2020 among the Company, the Guarantors, the Administrative Agent and the lenders party thereto and the Third Amendment to Credit Agreement dated as of April 8, 2020 among the Company, the Guarantors, the Administrative Agent and the lenders party thereto and as further amended from time to time, the “Credit Agreement”). Capitalized terms used herein and not defined shall have the meanings set forth in the Credit Agreement.
The Fourth Amendment, among other items, permits the Company to incur and, if necessary, repay indebtedness incurred to the Paycheck Protection Program under the Coronavirus Aid, Relief and Economic Security Act, as amended (the “PPP Indebtedness”). The Company has also agreed to, among other items, (i) provide a notice of the incurrence of any PPP Indebtedness and copies of the definitive loan documents evidencing such PPP Indebtedness to the Administrative Agent promptly following the incurrence of PPP Indebtedness, (ii) within five (5) Business Days of a Responsible Officer of any Credit Party becoming aware of, the occurrence (or alleged occurrence) of any default or event of default with respect to any PPP Indebtedness, provide a written notice setting forth the details of such default or event of default and the action that the applicable Credit Parties have taken and propose to take with respect thereto and (iii) promptly provide notice of the forgiveness or repayment of any PPP Indebtedness.
About Carrols Restaurant Group, Inc. (NASDAQ:TAST)
Carrols Restaurant Group, Inc. is a holding company. The Company conducts all of its operations through its direct and indirect subsidiaries. The Company operates in the hamburger category of the quick-service restaurant segment of the restaurant industry. The Company is a Burger King franchisee in the United States and operates its restaurants under the Burger King trade name. The Company owns and operates approximately 705 Burger King restaurants located in over 20 Northeastern, Midwestern and Southeastern states, such as Illinois, Indiana, Kentucky, Maine, Massachusetts, Michigan, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Vermont, Virginia and West Virginia. Burger King restaurants feature the Whopper sandwich, as well as a range of hamburgers, chicken and other sandwiches, French fries, salads, breakfast items, hot dogs, snacks, smoothies, frappes and other offerings. Its subsidiaries include Carrols LLC and Carrols Corporation.
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