As previously disclosed, Del Taco Restaurants, Inc. (the “Company,” “we,” or “our”) on September 19, 2019, amended its 2015 Senior Credit Facility by entering into the Fourth Amendment to the Senior Credit Facility (the “Senior Credit Facility”). The Senior Credit Facility includes a revolving credit agreement under which we can borrow up to $250.0 million. The material terms of the Senior Credit Facility are described under “Note 7 – Debt, Obligations Under Finance Leases and Deemed Landlord Financing Liabilities” of the Notes to Consolidated Financial Statements for Del Taco Restaurants, Inc. which is included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, filed with the Securities and Exchange Commission on March 13, 2020, and which description is incorporated herein by reference.

As of December 31, 2019, the Company had a total of $87.7 million of availability for additional borrowings under the Senior Credit Facility as the Company had $145.0 million of outstanding borrowings and $17.3 million of letters of credit outstanding which each reduce availability under the Senior Credit Facility.

On March 16, 2020 as a precautionary measure, we provided notice to the lenders under the Senior Credit Facility of our desire to borrow $25.0 million available under the Senior Credit Facility, which amounts were deposited with us on March 16, 2020. Additionally, on March 30, 2020 as a precautionary measure, we provided an additional notice to the lenders under the Senior Credit Facility of our desire to borrow $25.0 million available under the Senior Credit Facility, which amounts were deposited with us on April 1, 2020 such that a total of $217.3 million is currently outstanding (including $17.3 million of outstanding letters of credit). With the draw downs and existing cash, the Company currently has over $56.0 million of cash on hand. As of the date of this Current Report on Form 8-K, we remain in compliance with all financial covenants set forth in the Senior Credit Facility.

The aforementioned borrowings under the Senior Credit Facility were a precautionary measure to bolster its cash position and enhance its financial flexibility>given uncertain market and economic conditions as a result of the COVID-19 pandemic.>The proceeds from these borrowings are being held on our balance sheet and may in the future be used for general corporate purposes, including, without limitation, working capital, capital expenditures in the ordinary course of business, or other lawful corporate purposes, all in accordance with and subject to the terms and conditions of the Senior Credit Facility.

Item 8.01 Other Events

On April 2, 2020, the Company issued a press release providing a business update related to the COVID-19 pandemic. A copy of the press release is attached as Exhibit 8.01 to this Current Report on Form 8-K.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Del Taco Restaurants, Inc. Exhibit
EX-8.01 2 tacoex80120200402.htm EXHIBIT 8.01 Exhibit Exhibit 8.01For Immediate ReleaseDel Taco Restaurants,…
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About Del Taco Restaurants, Inc. (NASDAQ:TACO)

Del Taco Restaurants, Inc., formerly Levy Acquisition Corporation, is an operator and franchisor of restaurants featuring fresh and fast made-to-order cuisine, including both Mexican inspired and American classic dishes. The Company operates Del Taco restaurants in approximately 20 states, including over one franchised restaurant in Guam. The Company has approximately 300 Company-operated and over 250 franchised restaurants. The Company’s menu offers a combination of Mexican-inspired food, such as tacos and burritos, and American classics, such as Double Del cheeseburgers, crinkle-cut fries and milkshakes. Additionally, the Company’s menu features both premium items such as Epic Burritos, Handcrafted Ensaladas and Fresca Bowls, as well as lower priced items on its Buck & Under Menu. Del Taco restaurant is a free-standing building with drive-in service that ranges in size from 2,000 to 2,600 square feet.