BAGL Einstein Noah Restaurant Group Inc. said Thursday it has recapitalized its existing loan and declared a one-time shareholder dividend of $4 per share, bringing to a close a review of strategic alternatives that had included a possible sale or merger.
The Lakewood, Colo.-based parent to the Einstein Bros Bagels, Noah’s New York Bagels and Manhattan Bagels brands announced in May that it had hired Piper Jaffray as financial advisor to explore various options to maximize value for stockholders.
The recapitalization announced Thursday includes the amendment and restatement of its existing senior credit facility, increasing a term loan from $75 million to $100 and a revolving credit facility from $50 million to $75 million. The maturity date is also extended from December 2015 to December 2017.
Proceeds will be used to fund a one-time dividend to shareholders of $4 per share — or about $68 million in aggregate — as well as the ongoing quarterly dividend, working capital, capital expenditures and other corporate purposes.
Nelson Heumann, chairman of Einstein Noah’s board, said the announcement marked an important milestone for the company. “We are pleased to have been able to recapitalize the business through our existing bank facility on such favorable terms and maintain modest leverage,” he said. “We view this one-time special dividend as a clear demonstration of our commitment to returning capital to shareholders, as well as our confidence in the strong results and momentum of the business.”
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