RBS Citizens Agents Diversified Restaurant Credit Line Amendment
Diversified Restaurant Holdings announced that it amended its existing credit facility. RBS Citizens acted as lead lender and administrative agent.
The amendment provides $20 million of development capital to enable the geographic expansion of Bagger Dave’s and BWW restaurants. The amendment also provides a 25 basis point reduction on the company’s existing total debt.
In 2014, the company plans to open 11 new restaurant locations. This includes eight new Bagger Dave’s locations in Michigan and Indiana, a 44.4% unit increase over the 18 units in operation at the end of 2013. The company also plans to open three Buffalo Wild Wings restaurants in Michigan and Florida during the year.
“We believe that the new development capital and interest rate reduction are testaments to the strength of our balance sheet and successful execution of our growth,” commented David G. Burke, CFO of DRH. “Although our cash balance remains strong, additional development capital provides us with flexibility to effectively execute on our strategic growth plan.”
Diversified Restaurant Holdings owns and operates Bagger Dave’s Burger Tavern. The company also operates 36 Buffalo Wild Wings Grill & Bar franchised restaurants in Indiana, Illinois, Michigan and Florida.