Red Robin Gourmet Burgers, a casual dining restaurant chain, completed the refinancing of its secured credit facility on Oct. 2, 2026. The new facility replaces the company’s prior credit agreement and follows the substantial completion of its refranchising transactions, the first step in strengthening the balance sheet under the first choice plan.
As announced on Sept. 1, 2026, Red Robin completed the substantial majority of the closings under its three refranchising transactions with Op Burgers, Kuber Oregon and Kuber Washington, and Evergreen Dining. Together, these transactions involved the sale of 108 company-owned restaurants for approximately $89.4 million in gross proceeds. The sale of eight more restaurants under the Op Burgers agreement is expected to close by the end of the company’s 2026 fiscal year for approximately $6.6 million, bringing total gross proceeds to approximately $96 million from the sale of 116 restaurants. These proceeds, along with the company’s improved operating performance, put Red Robin in a stronger position to refinance.
The new credit facility consists of the following:
- Size: $115 million, made up of a $25 million revolving line of credit and a $90 million term loan.
- Term: Five years, maturing Oct. 2, 2031.
- Room to Grow: The company may increase the facility by up to an additional $20 million in the future, subject to lender participation.
- Use of Funds: Repay all borrowings under the prior credit agreement, pay related fees and expenses, and support working capital and general corporate needs, including capital expenditures and permitted acquisitions.
- Pricing: Interest on the term loan and revolving line of credit is based on SOFR plus 275 to 350 basis points, depending on the company’s leverage ratio, with no SOFR floor. The initial rate is SOFR plus 325 basis points.
“Completing our refinancing is an important step forward for Red Robin and a key priority of our First Choice Plan,” Dave Pace, president and CEO of Red Robin, said. “When we set out to strengthen our balance sheet, we knew it would be a multi-step process. Refranchising was the first in order to position us to refinance our debt. With this new facility in place, we have a stronger financial foundation from which to execute the other elements of the First Choice Plan, along with a longer runway and greater financial flexibility to invest in our restaurants, enhance guest experience and support our franchise partners. I want to thank our Team Members, franchise partners, lenders and advisors for their commitment and support throughout this process.”
The credit facility was led by JPMorgan Chase Bank as administrative agent and collateral agent, and Texas Capital Bank as documentation agent. JPMorgan Chase Bank and U.S. Bank served as joint lead arrangers and joint bookrunners.
