Denny's enters $350m credit facility to save in annual interest

Nation's Restaurant News,  Jan 1, 2007  

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SPARTANBURG, S.C. -- Denny's Corp. reported Dec. 19 that two of its operating subsidiaries refinanced an old credit facility and entered into a new $350 million credit agreement that will save the company about $5.5 million annually in cash interest.

Denny's, operator or franchisor of 1,550 family-dining restaurants, said the new agreement--entered into by Denny's Inc. and Denny's Realty LLC--would improve the company's cash flow, provide flexibility and help to reduce debt. The credit agreement, consisting of a $50 million revolving credit facility, a $260 million term loan and a $40 million synthetic letter of credit, is available for working capital, capital expenditures and other general corporate purposes, Denny's said.

Banc of America Securities LLC is sole lead arranger and book manager for the new credit facility and Bank of America NA will be administrative agent.

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