Wells Fargo, Others Provide Denny’s With New Facility
Family restaurant chain, Denny’s announced it entered into a new five-year, $250 million senior secured bank credit facility. It is comprised of a $60 million term loan and a $190 million revolving line of credit. At the time of closing there were $105 million of borrowings under the new revolving line of credit.
Wells Fargo Securities, Regions Capital Markets and GE Capital Markets served as the joint lead arrangers and joint bookrunners for the new credit facility with Wells Fargo Bank serving as administrative agent and L/C issuer. Cadence Bank, Fifth Third Bank and RBS Citizens served as co-documentation agents.
The company’s board of directors approved a new share repurchase program authorizing the repurchase of an additional 10 million shares of its common stock, in addition to repurchases previously authorized. Under this authorization, the company may purchase its common stock from time to time in the open market or in privately negotiated transactions. The amount and timing of any purchases will depend upon a number of factors, including the price and availability of the company’s shares, trading volume and general market conditions
Mark Wolfinger, executive vice president, chief administrative officer and chief financial officer, stated, “Our new credit facility and share repurchase authorization are testaments to the tremendous progress Denny’s has made over the past several years with its franchise-focused business model, resulting in a much stronger balance sheet, supported by growing profitability and free cash flow. In addition to reducing interest costs, this refinancing provides increased flexibility for the company to continue to return cash to shareholders while also enhancing our ability to make appropriate investments in the brand to facilitate franchisee growth.”