Englewood, Colorado, USA, October 5th / PRNewswire / -- Red Robin Gourmet Burgers, Inc. (Nasdaq ticker: RRGB) ("Red Robin" or "the Company") announced today that it completed the refinancing of its guaranteed credit arrangement ("Credit Arrangement") on October 2, 2026. The new credit arrangement replaces the Company's previous credit agreement and follows closely on the completion of the majority of its franchise back-sale transaction, which is the first step in the Company's efforts to strengthen its balance sheet under the First Choice plan.

On September 1st, the company announced that it had completed the majority of the deliveries in three franchise rights resale transactions with Op Burgers, LLC, Kuber Oregon, LLC, Kuber Washington, LLC, and Evergreen Dining LLC. A total of 108 self-operated restaurants were sold in these transactions, generating approximately $89.4 million in revenue. According to the Op Burgers agreement, the remaining 8 restaurants are expected to be sold by the end of the company's 2026 fiscal year, bringing in an additional $6.6 million in revenue. In total, the sale of 116 restaurants is expected to generate about $96 million in revenue. The company stated that these revenues, combined with improved operational performance, put Red Robin in a more favorable position for refinancing.

The new credit arrangements include the following:

• Scale: $115 million, including a revolving credit line of $25 million and a term loan of $90 million.
• Term: 5 years, with the expiration date being October 2, 2031.
• Expansion of capacity: In the future, with the participation of lenders, it is possible to further increase this arrangement by up to an additional 20 million US dollars.
• Purpose of funds: To repay all loans under previous credit agreements, pay related fees and expenses, and support working capital as well as general corporate purposes, including capital expenditures and approved acquisitions.
• Pricing: The interest rates for fixed-term loans and revolving credit lines are based on SOFR, with an additional 275 to 350 basis points, depending on the company's leverage ratio, and there is no lower limit set by SOFR. The initial interest rate is SOFR plus 325 basis points.

Red Robin, President and CEO, stated: "Completing the refinancing is an important step for Red Robin and also a key priority in First Choice's plan. As we began to strengthen our balance sheet, we knew this would be a multi-step process. The franchise backbuy option was the first step, aimed at creating conditions for our debt refinancing. With this new credit arrangement in place, we now have a stronger financial foundation to carry out the other parts of the First Choice plan. We also have more time to turn over funds and greater financial flexibility to invest in our restaurants, enhance the customer experience, and support our franchise partners. I would like to thank our team members, franchise partners, lenders, and consultants for their commitment and support throughout this process."

JPMorgan Chase Bank ( JPMorgan Chase Bank , N.A .) served as the administrative agent and guarantee agent for this credit arrangement, while Texas Capital Bank ( Texas Capital Bank ) acted as the document agent. JPMorgan Chase Bank and the National Association of Bankers of America ( U.S . Bank National Association ) acted as the joint lead arranger and joint bookkeeper for this arrangement.

Regarding Red Robin Gourmet Burgers, Inc. (Nasdaq: RRGB)

Red Robin Gourmet Burgers, Inc. ( www.redrobin.com ) is a casual dining chain established in 1969, operated through its wholly-owned subsidiaries Red Robin International, Inc, as well as under the business names " Red Robin Gourmet Burgers and Brews ". The company believes that nothing brings people together like hamburgers and the joy of sitting around a dining table, and no one does a better job of making these moments around delicious food unforgettable than Red Robin. They offer a variety of hamburgers and mainstream dishes for customers of all ages, creating a relaxed and lively dining atmosphere. In addition to various hamburgers, Red Robin also serves salads, appetizers, main courses, desserts, specialty drinks, and Donatos Pizza in some of their stores. Customers can also enjoy takeout, delivery, and dining services online, experiencing Red Robin anytime, anywhere. By joining Red Robin Royalty ®, members can enjoy benefits and rewards such as unlimited refills at nearly 500 Red Robin stores (including franchise stores) across the United States and Canada. Red Robin …… YUMMM ®!

Forward-looking Statements

Forward-looking statements in this press release, including those regarding the franchise back-sale transaction and the expected completion time and status of the remaining restaurants, the intended use of funds by the company, the company's strategy under the First Choice plan, and all other statements that are not historical facts, are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on assumptions that the company deems reasonable and represent the situation as of the date of the statement. In addition to the aforementioned general statements, words such as "expected," "believed," "anticipated," "intended," "planned," "projected," "possible," "should," "will," "prospects," or "estimated," or their negative forms and variations, or similar language, are intended to identify forward-looking statements. Except as required by law, the company assumes no obligation to update such statements to reflect subsequent events or circumstances, and investors are advised not to rely excessively on any such forward-looking statements. Forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ significantly from those stated. These include, but are not limited to: the conditions for completing the transactions for the remaining restaurants may not be met in a timely manner or may not be met at all; the company may not be able to fully realize the expected benefits of the transactions, including the amount of expected benefits and their use; business interruptions may occur during or after the transactions; the impact of the transactions on the company's relationships with employees, franchisees, suppliers, landlords, and other third parties; whether there will be sufficient cash flow and the cost and availability of capital or credit arrangements; solvency and the ability to comply with credit arrangement contracts; costs related to leasing obligations, including potential contingent lease liabilities; changes in consumer behavior or preferences; geographical concentration in the western United States; and actions taken by franchisees that may harm the company's business or reputation.These factors should not be considered exhaustive and should be read in conjunction with other cautionary statements and risk factors contained in the company's 10-K, 10-Q, and 8-K reports (including all amendments to these reports) filed from time to time with the U.S. Securities and Exchange Commission.