Denny’s announced it has entered into a new five-year $250 million revolving credit facility. The new credit facility replaces a term loan of $54.75 million and a $190 million revolving line of credit.

Wells Fargo Securities, Regions Capital Markets and Citizens Bank served as the joint lead arrangers and joint bookrunners for the new credit facility with Wells Fargo Bank serving as administrative agent and LC issuer, and Cadence Bank, and Fifth Third Bank serving as Co-Documentation Agents.

Borrowings under the credit facility will bear a tiered interest rate, which is based on the company’s consolidated leverage ratio and is initially set at LIBOR plus 150 basis points. The new facility reduces the company’s credit spread by 25 basis points, at the current consolidated leverage ratio.

In addition, the company will have enhanced financial flexibility specifically towards returning capital to shareholders. At the time of closing, there were $135 million of borrowings under the new revolving line of credit, in addition to letters of credit issued in the normal course of business.

Mark Wolfinger, executive vice president, chief administrative officer and chief financial officer, stated, “Our new credit facility allows us to extend the maturities of our facility and lower the credit spreads. Most importantly, it provides increased flexibility for the Company to continue to return capital to shareholders, while also enhancing our ability to make appropriate investments in the brand. This transaction is a reflection of the progress we have made in our brand revitalization strategy, and demonstrates the confidence of the financial community in our strategic plan.”