Ruby Tuesday said it entered into a four-year revolving credit agreement under which the company may borrow up to $50 million with the option, subject to certain conditions, to increase the facility by up to $35 million. The senior credit facility, which was obtained to provide capital for general corporate purposes, replaced a previous five-year $200 million credit facility that was set to expire in December 2015. The terms of the senior credit facility provide for a $25 million sublimit for the issuance of standby letters of credit.

According to the company’s 8-K filing, Bank of America served as administrative agent and issuing bank; Wells Fargo Bank and Regions bank served as co-syndication agents; and Merrill Lynch and Wells Fargo Securities served as joint lead arrangers and joint book managers.

Under the senior credit facility, interest rates charged on borrowings can vary depending on the interest rate option the company chooses to utilize. The company’s options for the rate are a base rate or LIBOR, plus an applicable margin. The base rate is defined as the highest of the issuing bank’s prime rate, the federal funds rate plus 0.50%, or the Adjusted LIBOR rate (as defined in the in senior credit facility) plus 1.0%. The applicable margin for the LIBOR rate-based option is a percentage ranging from 2.50% to 3.50% and for the base rate option is a percentage ranging from 1.50% to 2.50%.