Diversified Restaurant updates leverage ratio covenant, definition

By Marisa Wong

Morgantown, W.Va., July 7 – Diversified Restaurant Holdings, Inc. entered into a sixth amendment to its primary credit facility with Citizens Bank, NA as administrative agent on June 30, according to an 8-K filed Friday with the Securities and Exchange Commission.

The amendment modifies the definition of consolidated EBITDA to allow for specified addbacks and modifies the maximum permitted consolidated lease-adjusted leverage ratio, beginning with the fiscal quarter ended June 30.

The maximum consolidated lease-adjusted leverage ratio is 6.25 to 1.00 initially, stepping down to 6.00 to 1.00 on Dec. 31, to 5.75 to 1.00 on March 31, 2018, to 5.50 to 1.00 on Dec. 31, 2018 and to 5.25 to 1.00 on Dec. 31, 2019.

Diversified is a Southfield, Mich.-based owner, operator and franchisor of the full-service restaurants Bagger Dave’s Legendary Burger Tavern and Buffalo Wild Wings.

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