What were the borrowings of long-term debt for Benihana in 2022?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
August 2026.
On December 13, 2022, the Company entered into the Fourth Amendment to the Credit Agreement that:
- Allows for a new $50.0 million delayed draw term facility, available to draw for twelve months and subject to a 1.75x Net Leverage Ratio incurrence test (as defined in the Credit Agreement) for permitted acquisitions, stock repurchases and new restaurant capital expenditures;
- Allows the Company to redeem, repurchase or otherwise acquire its own capital stock in an aggregate amount of up to $50 million subject to a 1.75x Net Leverage Ratio incurrence test and no d
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the company borrowed $50 million on a delayed draw term facility on December 28, 2022. This delayed draw term loan is structured to be paid back in quarterly installments of $0.25 million, starting on December 31, 2023, with the final payment scheduled for August 2026.
Loans under the amended Credit Agreement bear interest at a rate per annum using the SOFR rate subject to a 1.00% floor plus an interest rate margin of 6.50%.
As of December 31, 2022, the weighted average interest rate on borrowings under the amended Credit Agreement was 10.31%.