The ONE Group Hospitality amended the its existing credit facility to provide an additional $50 million delayed draw senior secured term loan to its existing $25 million term loan and $12 million revolving credit facility. Goldman Sachs Specialty Lending Group served as administrative agent for the lenders.
“The amendment to our credit facility greatly enhances our financial flexibility and, at our option, will allow us to accelerate our incredibly robust development pipeline,” Emanuel “Manny” Hilario, president and CEO of The ONE Group, said. “We thank our lenders for their partnership and confidence in our outlook for delivering long-term sustainable growth and value for our shareholders.”
Key updates to the credit agreement include:
Allows for a new $50 million delayed draw term facility, available to draw for up to 12 months and subject to a 1.75x Net Leverage Ratio incurrence test (as defined in the credit agreement) for permitted acquisitions, stock repurchases and new restaurant capital expenditures; and
Allows the company to redeem, repurchase or otherwise acquire its own capital stock in an aggregate amount of up to $50 million subject to a 1.75x Net Leverage Ratio incurrence test.