Famous Dave's (DAVE) Announces Payoff of Debt and Lease Terminations, and Updates Restaurant Opening Guidance

July 1, 2009 8:49 AM EDT

Famous Dave's of America, Inc. (NASDAQ: DAVE) announced that it recently completed the early retirement of approximately $4.2 million of long-term debt at interest rates ranging from 8.83% to 10.53%, originally due between February 2020 and June 2022.

Famous Dave's incurred an early termination fee of $350,000 or $0.03 per diluted share as a result of this debt repayment. As of the end of Q2, the company's line of credit balance was $14.5 million.

The company also announced that it has successfully completed the lease termination of two of its restaurants in Atlanta that were closed during the 2008 fourth quarter. The company terminated these leases for approximately $1.0 million, resulting in the recapture of the lease termination reserve of approximately $450,000, or $0.03 per diluted share.

The company is updating its guidance on franchise restaurant openings in fiscal 2009 to a range of 9 to 11 from the original guidance of 8 to 10.
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