Diversified Restaurant Holdings (DRH), the largest franchisee for Buffalo Wild Wings and creator and operator of Bagger Dave’s Burger Tavern, announced the spinoff and distribution of shares of Bagger Dave’s for shareholders of record on December 19, 2016. The date of the distribution was December 25, 2016.

According to an 8-K filing, Citizens Bank agented an amendment to the company’s credit facility to support the transaction. The amendment releases all Bagger Dave’s entities as loan parties from the credit agreement and reduces the development line of credit to $5 million. It extends the maturity by one year to June 29, 2018, maintains the company’s revolving line of credit at $5 million, eliminates the clean-down provisions of the revolver and provides for the conversion of all existing development loans into term loans.

Each DRH stockholder will receive one share of Bagger Dave’s common stock for every share of DRH common stock held on the record date. No action is required by DRH stockholders to receive their Bagger Dave’s shares in the distribution. Shares of Bagger Dave’s will begin trading on the OTC Bulletin Board upon approval by Financial Industry Regulatory Authority.

David G. Burke, president and CEO, commented, “This is a significant milestone for DRH and a clean start for Bagger Dave’s. We believe focusing resources on each business independently should create more opportunities for strengthened operational performance.”