Chipotle obtains five-year $500 million revolving facility

By Rebecca Melvin

Concord, N.H., April 16 – Chipotle Mexican Grill Inc. entered into a new $500 million senior unsecured revolving credit agreement with JPMorgan Chase Bank, NA as administrative agent on Friday, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan Chase Bank NA, Morgan Stanley MUFG Loan Partners, LLC, Truist Bank, Fifth Third Bank NA and Citibank NA acted as joint bookrunners and joint lead arrangers.

The revolver includes a letter of credit sub-facility up to $20 million.

The revolver will mature on April 13, 2026.

Borrowings bear interest at an initial rate of Libor plus 137.5 basis points. The margin above Libor is subject to adjustment in a range from 137.5 bps to 212.5 bps, depending on the company’s total leverage ratio, with a Libor floor of 0%.

The company will pay a commitment fee on undrawn amounts equal to 17.5 bps.

Financial covenants require that the company maintain a maximum total leverage ratio of 3x and a minimum fixed charge coverage ratio of 1.5x, each as of the last day of each fiscal quarter and which restrict the company’s ability to create liens on its property, incur debt at the subsidiary level, make certain restricted payments including dividends or merge with other companies.

The chain of fast casual restaurants is based in Newport Beach, Calif.

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