Carrols Restaurant amends agreement leverage ratio, coverage ratio

By Tali Rackner

Norfolk, Va., Dec. 22 – Carrols Restaurant Group, Inc. entered into an amendment to its credit agreement with Wells Fargo Bank NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amendment changes the definition of the cash collateral release date to provide for the release of all such cash collateral on Dec. 19.

The amendment, dated Dec. 19, amends the agreement to provide that beginning with the first fiscal quarter ending on the date immediately following the cash collateral release date and for each fiscal quarter thereafter, the maximum adjusted leverage ratio, calculated as of the last day of each fiscal quarter, will be (a) 6.5 times from the fourth quarter of 2014 through the second quarter of 2015; (b) 6.25 times from the third quarter of 2015 through the fourth quarter of 2015; and (c) 6 times from the first quarter of 2016 and thereafter.

It also requires that the minimum fixed charge coverage ratio, calculated as of the last day of each fiscal quarter, will be (a) 1.20 times from the fourth quarter of 2014 through the second quarter of 2015; (b) 1.25 times from the third quarter of 2015 through the fourth quarter of 2015; and (c) 1.3 times from the first quarter of 2016 and thereafter.

Carrols is a Syracuse, N.Y.-based operator of three restaurant brands in the quick-casual and quick-service restaurant segments.

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