Red Robin completes $115M refinancing after selling 108 restaurants

Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) completed the refinancing of its secured credit facility on October 2, 2026, replacing its prior credit agreement with a new $115 million facility, according to a company statement.

The new facility consists of a $90 million term loan and a $25 million revolving line of credit, maturing October 2, 2031. The company may expand the facility by up to an additional $20 million, subject to lender participation. Interest is based on SOFR plus 275 to 350 basis points depending on the company's leverage ratio, with an initial rate of SOFR plus 325 basis points.

The refinancing follows Red Robin's refranchising of 108 company-owned restaurants to Op Burgers, LLC, Kuber Oregon, LLC, Kuber Washington, LLC, and Evergreen Dining LLC, generating approximately $89.4 million in gross proceeds. Eight additional restaurants under the Op Burgers agreement are expected to close by the end of fiscal year 2026 for approximately $6.6 million, bringing total expected proceeds from 116 restaurants to approximately $96 million.

Proceeds from the new facility will be used to repay borrowings under the prior credit agreement, cover related fees and expenses, and support working capital and general corporate needs, including capital expenditures and permitted acquisitions.

"With this new facility in place, we have a stronger financial foundation from which to execute the other elements of the First Choice Plan, along with a longer runway and greater financial flexibility to invest in our restaurants, enhance guest experience and support our franchise partners," said Dave Pace, President and Chief Executive Officer of Red Robin.

JPMorgan Chase Bank, N.A. served as Administrative Agent and Collateral Agent, with Texas Capital Bank as Documentation Agent. JPMorgan Chase Bank, N.A. and U.S. Bank National Association acted as Joint Lead Arrangers and Joint Bookrunners.

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