TEXAS ROADHOUSE,INC. (NASDAQ:TXRH) Files An 8-K Entry into a Material Definitive AgreementITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
On August7, 2017, we entered into that certain Amended and Restated Credit Agreement (the “Amended Credit Agreement”) with respect to our revolving credit facility with a syndicate of commercial lenders led by JPMorgan Chase Bank, N.A., PNC Bank, National Association and Wells Fargo Bank, National Association. The Amended Credit Agreement is a five-year unsecured, revolving credit agreement under which we can borrow up to $200.0 million with the option to increase the credit facility by an additional $200.0 million (subject to certain limitations set forth in the Amended Credit Agreement). The Amended Credit Agreement amends and restates our prior credit facility agreement dated August12, 2011, which was amended by that certain Omnibus Amendment No.1 and Consent to Credit Agreement and Guaranty dated November1, 2013. The Amended Credit Agreement also extends the maturity date of our credit facility until August5, 2022. The existing indebtedness in the amount of $50.0 million under the prior credit facility will continue under the Amended Credit Agreement.
Under the Amended Credit Agreement, we are required to pay interest on outstanding borrowing at LIBOR plus 0.875% to 1.875% and to pay a commitment fee of 0.125% to 0.300% per year for any unused portion of the credit facility, in each case depending on our leverage ratio. The Amended Credit Agreement imposes the financial covenants of maintaining a fixed charge coverage ratio of 2.00 to 1.00 and a maximum leverage ratio of 3.00 to 1.00. The lenders’ obligations to extend credit under the Amended Credit Agreement will depend upon our compliance with these covenants.
Fees and expenses incurred in connection with the Amended Credit Agreement were paid from cash on hand.
The Obligations to the Amended Credit Agreement can be accelerated upon an Event of Default, as such terms are defined in the Amended Credit Agreement. The description of the Amended Credit Agreement is qualified in its entirety by the copy thereof which is attached as Exhibit10.1 to this report and incorporated herein by reference.
ITEM 2.03. CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT.
The information above described under “Item 1.01. Entry into a Material Definitive Agreement” is hereby incorporated herein by reference.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
(d) EXHIBITS
10.1 Amended and Restated Credit Agreement dated August7, 2017, by and among Texas Roadhouse,Inc., the lenders named therein and JP Morgan Chase Bank, N.A., as Administrative Agent.
