DALLAS Brinker International Inc., parent to the Chili’s Grill & Bar and other casual-dining chains, said Monday it has entered into a new $215 million revolving credit facility.
The new unsecured, three-year facility replaces the company’s existing credit line, which was set to expire in October.
Brinker said it had about $50 million funded on the new facility, compared with $90 million funded in its previous facility. The company said it reduced the size of the facility as it anticipated fewer borrowing needs after the December sale of a majority interest in Romano’s Macaroni Grill, the reduction in corporate restaurant development and its focus on debt repayment. The reduction also was driven by efforts to improve operating efficiencies and to “prudently deploy capital in order to maintain a strong credit profile,” Brinker said.
The new facility will primarily be used as a backstop and to fund the company’s daily working capital needs, the company added.
“Our ability to close this transaction in a difficult financial environment is a testament to the strength of our brands, our balance sheet and considerable cash flow, as well as our financial relationships,” said Marie Perry, vice president of investor relations and treasury.
In addition to the 1,495 Chili’s units, Brinker owns or franchises 165 On The Border Mexican Grill & Cantinas and 44 Maggiano’s Little Italy units.
Contact Ron Ruggless at [email protected].