Potbelly, a neighborhood sandwich shop concept, closed a new $30 million revolving credit facility led by Wintrust Bank. The facility will mature on Feb. 7, 2027.

Under the terms of the new facility, the company achieved a 600-basis point reduction in the currently applicable interest rate margin relative to its prior term loan. The facility currently bears an interest rate of SOFR plus 325 basis points (as compared to an interest rate of SOFR plus 925 basis points under the company’s prior term loan) with the potential applicable interest rate ranging from SOFR plus 375 basis points to SOFR plus 275 basis points dependent upon certain leverage ratios achieved by the company. The new facility is expected to result in approximately $2 million of annual net cash interest savings.

“Our new credit facility further strengthens our financial position and is yet another testament to the improvements we have made to our business over the past three years,” Steve Cirulis, chief financial officer of Potbelly, said. “This new facility will provide the company with significant financial flexibility to pursue our growth ambitions under our Five-Pillar Strategy as well as annualized interest savings. We are excited to add Wintrust as a lending partner with their deep experience in supporting Chicago-based companies and believe that this transaction further underscores the strength of Potbelly.”