Benihana Inc. (NASDAQ: BNHNA; BNHN), operator of the nation’s largest chain of Japanese theme and sushi restaurants, today announced that it has completed an amendment and restatement of its credit agreement with Wells Fargo Bank, National Association. The amended and restated credit agreement provides the Company with continued access to its existing secured revolving credit facility through February 10, 2014, with an initial aggregate principal amount of $30 million and an option to increase the principal amount by $5 million to $35 million, subject to certain conditions.
As of February 10, 2011, the revolving credit facility will bear interest at LIBOR +4.25%, which compares favorably to the prior revolving credit facility, which bore interest at LIBOR +4.75% with a floor of 5.75%. The amended and restated credit agreement also contains modifications to certain covenants and offers the Company greater financial flexibility.
Richard C. Stockinger, Chairman, Chief Executive Officer and President, said “We are pleased to have reached this new credit agreement, which provides for the capital needs of our business on more favorable terms, and extends the maturity of our facility by an additional three years. We appreciate Wells Fargo’s continued partnership and support of our Company.”
The Company intends to use the proceeds of the credit facility to finance its restaurant expansion and related costs and to provide for working capital and general corporate requirements.