Luby's amends credit agreement with Wells Fargo, gets waiver for Q2

By Susanna Moon

Chicago, March 27 - Luby's, Inc. amended its credit agreement on March 21 with Wells Fargo Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amendments added the condition precedent to any new borrowing, other than a conversion or continuation of existing loans, and any amendment, renewal or extension of any letter of credit prior to the second quarter of fiscal year 2016, that the aggregate unpaid principal balance of the obligations will not exceed 50% of the then current value of all mortgaged property.

The company also revised the lease-adjusted leverage ratio to no more than (i) 4.75 times during the second, third and fourth quarters of fiscal year 2014, (ii) 4.5 times during the first, second and third quarters of fiscal year 2015 and (iii) 4.25 times at all times thereafter.

Luby's also obtained a waiver of an existing default for the second fiscal quarter of 2014 related to the net profit - two consecutive quarters covenant.

Luby's is a Houston-based operator of restaurants.

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