Denny’s Corporation announced that it has entered into a third amendment to its amended and restated credit facility that provides the company with greater financial flexibility by resetting financial covenants. The amended credit facility commitment is now $375 million.
Under the amendment, certain provisions of the credit facility were modified, including the waiver of certain financial covenants through March 31, 2021, followed by the introduction of more favorable covenant levels in the fiscal second and third quarters of 2021. The company had $215 million outstanding on the facility as of November 18, 2020, the end of its fiscal November period.
Robert Verostek, Senior Vice President and Chief Financial Officer, says, “This amendment to our credit facility provides increased financial flexibility in the near-term due to the pandemic while aligning the total commitment size with a more conservative leverage philosophy. The amendment also demonstrates the ongoing confidence of the financial community in our business and management team.”
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