Business
Papa Johns Announces Completion of Amended Credit Facilities, Further Strengthening Financial Foundation to Support Execution of Strategic Objectives
Renews Existing $600 Million Revolving Credit Facility through 2030 Secures Additional $200 Million Senior Secured Term Loan LOUISVILLE, Ky.--(BUSINESS
About this update from Papa John's International, Inc.
[{"type":"text","content":"\nRenews Existing $600 Million Revolving Credit Facility through 2030\n\nSecures Additional $200 Million Senior Secured Term Loan\n\n LOUISVILLE, Ky.--(BUSINESS WIRE)--\nPapa Johns International, Inc. (Nasdaq: PZZA) (“Papa Johns®”) (the “Company”) today announced that it has completed the closing of an amended credit agreement in a transaction that provides the Company with additional liquidity and strengthens its overall financial profile. With this agreement, the Company is well positioned to continue executing on its strategic priorities aimed at improving sales, identifying opportunities to ensure the restaurant economic model is strong, and driving profitable growth throughout the system.\n\nThe Company amended and restated its existing credit agreement (the “Amended Credit Agreement”) with its lenders and other agents party thereto. Pursuant to the Amended Credit Agreement, the maturity of the Company’s existing $600 million revolving credit facility has been extended for a new five-year term through 2030. The Amended Credit Agreement also provides the Company with a new $200 million senior secured term loan (the “Term Loan”) maturing in 2030. Proceeds from the Term Loan will be used to pay down existing borrowings under the revolving credit facility, which prior to closing, is similar to the Company’s year-end balance. This transaction is leverage neutral, while providing additional borrowing capacity under the revolver and extending the Company’s maturity profile.\n\n“We’re pleased to have reached an agreement that provides us with additional financial strength and flexibility to execute on the important strategic priorities we outlined last year,” said Todd Penegor, President and Chief Executive Officer. “Papa Johns has established a strong foundation for success, including team members and franchisees who are passionate about creating great experiences for our customers. This agreement builds on the early progress we are seeing with our transformation strategy, and supports our continued investment in high-return opportunities that will better position us to deliver on our promise to be the best pizza makers in the business.”\n\n“We appreciate the support that we’ve received from our banking partners, which reflects their confidence in our strong credit profile and balance sheet,” said Ravi Thanawala, Chief Financial O...