Red Robin Secures $115 Million Credit Facility for Turnaround

Red Robin International Inc secured a new $115 million credit facility to support its First Choice Plan turnaround strategy. The five-year agreement, which matures on October 2, 2031, includes a $90 million term loan and a $25 million revolving credit line with an initial interest rate of 3.25%.

To facilitate debt reduction, the company sold 108 company-owned restaurants for approximately $89.4 million and expects to sell eight additional locations for $6.6 million. Red Robin intends to use these proceeds to pay down existing debt, which stood at $167.2 million as of July.

CEO David Pace stated the new facility provides a stronger financial foundation and greater flexibility to invest in guest experiences and franchise partners. The refinancing was led by JPMorgan Chase Bank and Texas Capital Bank.