Potbelly Corporation Announces New Three-Year, $30 Million Credit Facility
February 12 2024 - 8:00AM
Potbelly Corporation (NASDAQ: PBPB), (“Potbelly” or the “Company”)
the iconic neighborhood sandwich shop concept, today announced that
the Company has closed a new $30 million revolving credit facility
(the “Facility”) that matures on February 7, 2027 led by Wintrust
Bank.
Under the terms of the new Facility, the Company achieved a
600-basis point reduction in the currently applicable interest rate
margin relative to the prior term loan. The Facility currently
bears an interest rate of SOFR + 325 basis points (as compared to
an interest rate of SOFR + 925 basis points under the Company’s
prior term loan) with the potential applicable interest rate
ranging from SOFR + 375 basis points to SOFR + 275 basis points
dependent upon certain leverage ratios achieved by the Company. The
new Facility is expected to result in approximately $2 million of
annual net cash interest savings.
“Our new credit facility further strengthens our financial
position and is yet another testament to the improvements we have
made to our business over the past three years,” commented Steve
Cirulis, Chief Financial Officer of Potbelly. “This new Facility
will provide the company with significant financial flexibility to
pursue our growth ambitions under our Five-Pillar Strategy as well
as annualized interest savings. We are excited to add Wintrust as a
lending partner with their deep experience in supporting
Chicago-based companies and believe that this transaction further
underscores the strength of Potbelly.”
Please refer to the form 8-K filed with the SEC
for additional information on the new Facility.
About PotbellyPotbelly Corporation is a
neighborhood sandwich concept that has been feeding customers’
smiles with warm, toasty sandwiches, signature salads, hand-dipped
shakes and other fresh menu items, customized just the way
customers want them, for more than 40 years. Potbelly promises
Fresh, Fast & Friendly service in an environment that reflects
the local neighborhood. Since opening its first shop in Chicago in
1977, Potbelly has expanded to neighborhoods across the country -
with approximately 426 shops in the United States including
approximately 81 franchised shops in the United States. For more
information, please visit our website at www.potbelly.com.
Forward-Looking Statements
In addition to historical information, this presentation and our
earnings conference call contain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, Section 21E of the Securities Exchange Act of 1934, as
amended and the Private Securities Litigation Reform Act of 1995.
Forward-looking statements, written, oral or otherwise made,
represent the Company’s expectation or belief concerning future
events. Without limiting the foregoing, the words “believes,”
“expects,” “may,” “might,” “will,” “should,” “seeks,” “intends,”
“plans,” “strives,” “goal,” “estimates,” “forecasts,” “projects” or
“anticipates” or the negative of these terms and similar
expressions are intended to identify forward-looking statements.
Forward-looking statements included in this presentation may
include, among others, statements relating to our (i) ability to
achieve certain leverage ratios and reduce the interest rate under
the Facility; (ii) expected annual cash interest savings; and (iii)
expectation that the Facility will provide significant financial
flexibility and interest savings.
By nature, forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially
from those projected or implied by the forward-looking statement,
due to reasons including, but not limited to, risks related to
compliance with our Credit Agreement covenants; competition;
general economic conditions; our ability to successfully implement
our business strategy; the success of our initiatives to increase
sales and traffic; changes in commodity, energy and other costs;
our ability to attract and retain management and employees;
consumer reaction to industry-related public health issues and
perceptions of food safety; our ability to manage our growth;
reputational and brand issues; price and availability of
commodities; consumer confidence and spending patterns; and weather
conditions. In addition, there may be other factors of which we are
presently unaware or that we currently deem immaterial that could
cause our actual results to be materially different from the
results referenced in the forward-looking statements. All
forward-looking statements contained in this press release are
qualified in their entirety by this cautionary statement. Although
we believe that our plans, intentions and expectations are
reasonable, we may not achieve our plans, intentions or
expectations. Forward-looking statements are based on current
expectations and assumptions and currently available data and are
neither predictions nor guarantees of future events or performance.
You should not place undue reliance on forward-looking statements,
which speak only as of the date hereof. See “Risk Factors” and
“Cautionary Statement on Forward-Looking Statements” included in
our most recent annual report on Form 10-K and other risk factors
described from time to time in subsequent quarterly reports on Form
10-Q or other subsequent filings, all of which are available on our
website at www.potbelly.com. The Company undertakes no obligation
to publicly update or revise any forward-looking statement as a
result of new information, future events or otherwise, except as
otherwise required by law.
Investor Contact: Jeff
PriesterICRinvestor@potbelly.com
Media
Contact:ICRPotbellyPR@icrinc.com
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