Cracker Barrel amends credit facility to allow for new convertibles

Chicago, June 16 – Cracker Barrel Old Country Store Inc. entered into a sixth amendment to its credit agreement from Sept. 5, 2018 on Tuesday to permit the issuance of $275 million of new convertible notes, according to an 8-K filing with the Securities and Exchange Commission.

The amendment confirmed that the issuance, conversion, exchange and settlement of the notes did not constitute a prohibited asset disposition, investment, restricted payment or debt repayment.

It also provides that the dividend payment made in September 2020 does not constitute usage of the basket for dividends and repurchases made in the fiscal year that ends July 30.

Additionally, it terminates the existing waivers for the financial covenants and also ends the related limitations under the credit agreement on the use of the accordion, permitted acquisitions, certain investments, certain restricted payments and capital expenditures.

The amendment stops the minimum liquidity requirement and also reinstates the testing of financial covenants under the credit agreement.

Bank of America, NA is the administrative agent and collateral agent on the facility.

Cracker Barrel is a Lebanon, Tenn.-based operator of restaurants.

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