What is the date of the Second Amendment to Amended and Restated Credit Agreement for Noodles & Company?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
On October 29, 2024, the Company amended its A&R Credit Agreement, by entering into that certain Second Amendment to Amended and Restated Credit Agreement (the "Second Amendment"). Among the modifications, the Second Amendment: (i) increased the maximum applicable rate ranges (A) with respect to SOFR loans, from 1.75% - 3.00% to 1.75% - 3.75% per annum and (B) with respect to base rate loans, from 0.75% - 2.00% to 0.75% - 2.75% per annum, in each case as determined by the Consolidated Total Lease Adjusted Leverage Ratio (as defined in the A&R Credit Agreement), (ii) conditioned the use of the general restricted payment basket on satisfaction of a Consolidated Total Lease Adjusted Leverage Ratio (as defined in the A&R Credit Agreement) of less than or equal to 4.00 to 1.00 and a Consolidated Fixed Charge Coverage Ratio (as defined in the A&R Credit Agreement) of greater than or equal to 1.25 to 1.00, (iii) restricted entry into new lease agreements so long as the Consolidated Total Lease Adjusted Leverage Ratio (as defined in the A&R Credit Agreement) in Section 7.11(a) of the Credit Agreement is greater than or equal to 4.50 to 1.00, (iv) increased the Consolidated Total Lease Adjusted Leverage Ratio (as defined in the A&R Credit Agreement) in Section 7.11(a) of the Credit Agreement to be no greater than (x) 5.50 to 1.00 for the fiscal quarter ending on October 1, 2024 until and including the last day of the fiscal quarter ending September 30, 2025 and (y)
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the Second Amendment to the Amended and Restated Credit Agreement was entered into on October 29, 2024. This amendment modifies the company's credit agreement, impacting financial terms and operational restrictions.
Specifically, the Second Amendment adjusts the maximum applicable interest rate ranges for loans. For SOFR loans, the range increased from 1.75%-3.00% to 1.75%-3.75% per annum. For base rate loans, the range increased from 0.75%-2.00% to 0.75%-2.75% per annum. These rates are determined by the Consolidated Total Lease Adjusted Leverage Ratio, as defined in the Amended and Restated Credit Agreement.
The amendment also places conditions on the use of the general restricted payment basket, requiring a Consolidated Total Lease Adjusted Leverage Ratio of less than or equal to 4.00 to 1.00 and a Consolidated Fixed Charge Coverage Ratio of greater than or equal to 1.25 to 1.00. Furthermore, it restricts the company from entering into new lease agreements if the Consolidated Total Lease Adjusted Leverage Ratio exceeds 4.50 to 1.00.
Finally, the Second Amendment increases the Consolidated Total Lease Adjusted Leverage Ratio in Section 7.11(a) of the Credit Agreement to a maximum of 5.50 to 1.00 for the fiscal quarter ending on October 1, 2024, until the end of the fiscal quarter ending September 30, 2025. These changes reflect adjustments to Noodles & Company's financial obligations and operational flexibility, which could indirectly affect franchisees through the company's overall financial health and strategic decisions.