Brinker draws $135.5 million from revolver for franchisee acquisition

By Wendy Van Sickle

Columbus, Ohio, Aug. 24 – Brinker International, Inc. drew $135.5 million from its $750 million revolving credit facility to purchase a franchisee that owns 103 Chili’s Grill & Bar locations, according to a 10-K filed with the Securities and Exchange Commission.

The draw down occurred after the end of the company’s 2015 fiscal year, which wrapped up June 24. At that point it had $366.2 million available under the facility and was in compliance with all of its financial covenants, according to the filing.

The company entered into the revolver in March, replacing its existing credit facility which included a $250 million revolver and a term loan. At that time, it drew about $345.8 million under the revolver to pay off $168 million outstanding under the term loan and $177 million under the previous revolving facility.

During the fourth quarter of 2015, Brinker drew an additional $38 million under the facility, mostly to fund share repurchases, it said.

Based on the company’s current credit rating, the revolver’s current interest is at Libor plus 138 basis points. Its spread ranges from 100 to 170 bps. The facility matures March 12, 2020.

The owner and operator of restaurant franchises Chili’s Grill & Bar and Maggiano’s Little Italy is based in Dallas.

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