KeyBank Provides Kona Grill Facility Expansion
Kona Grill announced it entered into a five-year $35 million amended credit facility with KeyBank that replaces an existing $20 million credit line.
The amended facility allows for available borrowings of $35 million compared to $20 million under the old facility. The new facility bears interest between 1.5% and 2.5% over LIBOR, dependent upon the company’s leverage ratio, compared to an interest rate of LIBOR plus 3.0% to 3.5% under the old facility. The amended facility also provides additional flexibility and less restrictive financial covenants. The facility is secured by the assets of the company and has a five-year term with an option to extend the term for one year upon the lenders’ consent.
“We are pleased to once again partner with KeyBank to provide us with a substantially increased credit facility,” said Berke Bakay, president and CEO of Kona Grill. “The amended credit facility enables us to capitalize on the strength of our brand by locking into a new five year term through November 2019. This facility enables us to significantly increase the availability of funds, while lowering our interest rate and unused fees and providing additional flexibility to support our goal of 20% unit growth for the foreseeable future. With a strong, debt-free balance sheet, including proceeds from our recent equity offering, funds available under the amended facility and cash flow from operations, we believe we are well positioned for future growth.”
Kona Grill features American favorites with an international influence and award-winning sushi in a casually elegant atmosphere.