Denny’s, franchisor and operator of one of America’s largest franchised full-service restaurant chains, entered into a new five-year $400 million revolving credit facility.

Wells Fargo served as administrative agent for the transaction. Wells Fargo and Citizens served as joint lead arrangers.

The new credit facility replaces a $325 million revolving line of credit. Borrowings under the new credit facility will bear a tiered interest rate based on the company’s consolidated leverage ratio and is initially set at LIBOR + 200 basis points. The new facility maintains the company’s credit spread at the current consolidated leverage ratio. In addition, the company will have enhanced financial flexibility, specifically towards returning capital to shareholders.

The company’s board of directors approved a new multi-year share repurchase program authorizing the repurchase of an additional $200 million of its common stock in addition to repurchases previously authorized. Under this authorization, the company may purchase its common stock from time to time in the open market or in privately negotiated transactions. The amount and timing of any purchases will depend upon a number of factors, including the price and availability of the company’s shares, trading volume and general market conditions.