Kona Grill Announces New $20 Million Credit Agreement
Kona Grill, an American grill and sushi bar, announced that it entered into a new four-year $20 million credit facility with KeyBank and Stearns Bank. The new facility replaces an existing $6.5 million credit line and term loan.
“We are excited to complete this new facility which will provide us with capital to execute our growth strategy,” said Berke Bakay, president and CEO of Kona Grill. “We were able to more than triple the size of our existing facility, while lowering the interest rate and increasing flexibility with this facility. With our existing cash on hand, available borrowings under the new facility, and cash-flow from operations, we believe we are well positioned to achieve our growth plans in the next several years. Our team would like to thank KeyBank and Stearns Bank for their partnership in this facility.”
The new facility allows for available borrowings of $20 million compared to $6.5 million under the old facility. The new facility bears interest between 3% and 3.5% over LIBOR, dependent upon the company’s leverage ratio, compared to an interest rate of 4.95% under the old facility. The facility is secured by the assets of the Company and has a four-year term with an option to extend the term for one year upon the lenders’ consent.
Kona Grill owns and operates 23 restaurants located in 16 states.