Monday, July 23, 2007 6:18:13 PM
Thursday , June 28, 2007 19:53ET
LAKEWOOD, Colo., June 28 /PRNewswire-FirstCall/ -- Einstein Noah Restaurant Group, Inc. (Nasdaq: BAGL) today announced it has amended its first lien credit facility with Wells Fargo Foothill, Inc., receiving more favorable interest rates and covenants on up to $110 million in loans. These loans will be used to repay the remainder of the Company's $25 million subordinated note, which was partially paid off, along with a $65 million second lien term loan, with proceeds of the recently completed public offering. As a result of the amended facility and the debt repayment of the second lien and subordinated note from the proceeds of the public equity offering, Einstein Noah expects to realize approximately $11.7 million in annual interest savings.
The amended facility has a five-year term and a maximum amount of $110 million, including a term loan of up to $90 million and a revolving loan of up to $20 million. The term loan will be repaid in quarterly principal payments of $225,000, with the remaining unpaid amounts due in full at maturity. The loans, which may be prepaid at any time without penalty, will bear interest at LIBOR or Prime rates plus, depending upon the Company's consolidated leverage ratio, 1.75% to 2.25% for LIBOR loans and 0.75% to 1.25% for base rate loans. In addition, the Company has access, subject to certain conditions, to an optional incremental term loan of up to $57 million to be used solely to redeem its outstanding Series Z Preferred Stock due on June 30, 2009. That loan would be repaid in equal quarterly installments of 0.25% of the amount drawn, with remaining unpaid amounts due in full at maturity.
"The amendment of our loan agreement is another important milestone for Einstein Noah as we continue to strengthen our balance sheet and build value for investors," said Rick Dutkiewicz, chief financial officer. "Our amended credit facility and the debt repayment with the proceeds from Einstein Noah's public offering enable us to pay off higher interest debt, achieve substantial interest savings, and improve our financial flexibility as we pursue our growth objectives."
About Einstein Noah Restaurant Group, Inc.
Einstein Noah Restaurant Group is the largest owner/operator, franchisor and licensor of bagel specialty restaurants in the United States. The Company has approximately 600 restaurants in 36 states and the District of Columbia under the Einstein Bros. Bagels, Noah's New York Bagels and Manhattan Bagel brand. Einstein Noah's product offerings include fresh bagels and other bakery items baked on-site, made-to-order breakfast and lunch sandwiches on a variety of bagels and breads, gourmet soups and salads, decadent desserts, premium coffees, and an assortment of snacks. The Company's manufacturing and commissary operations prepare and assemble consistent, high-quality ingredients that are delivered fresh to its restaurants. More information is available on the Company's website at http://www.einsteinnoah.com.
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