LOS ANGELES California Pizza Kitchen Inc. said Friday it entered into an agreement with Bank of America N.A. to both close on an accelerated stock repurchase program totaling $46.3 million and to increase its credit facility to a maximum of $100 million.
The company, which operates or franchises about 230 restaurants, said the moves would help it return capital to shareholders, leverage its balance sheet and reduce the overall cost of capital.
The stock repurchase agreement, which will be funded through cash and the company’s credit facility, is part of CPK’s $50 million stock buyback program that it authorized in August. CPK has 28.9 million shares outstanding, the company reported Friday.
The amended credit facility with Bank of America was lifted to $100 million from $75 million, the company said. As of last Dec. 30, the company had total borrowings and outstanding letters of credit totaling $27.1 million. CPK said it expects to secure a newer revolving credit facility in the amount of $150 million to replace the current facility.