Diversified Restaurant Holdings Secures Development Credit
Diversified Restaurant Holdings, Inc. the creator, developer and operator of the unique, full-service, ultra-casual restaurant and bar Bagger Dave's Burger Tavern and one of the largest franchisees for Buffalo Wild Wings, announced that it has amended its existing credit facility with RBS Citizens, N.A.
The amendment provides $20.0 million of development capital to enable the geographic expansion of Bagger Dave's and BWW restaurants. The amendment also provides a 25 basis point reduction on the Company's existing total debt.
In 2014, the Company plans to open a total of 11 new restaurant locations. This includes eight new Bagger Dave's locations in Michigan and Indiana, a 44.4 percent unit increase over the 18 units in operation at the end of 2013. The Company also plans to open three Buffalo Wild Wings restaurants in Michigan and Florida during the year.
"We believe that the new development capital and interest rate reduction are testaments to the strength of our balance sheet and successful execution of our growth," says David G. Burke, chief financial officer of DRH. "Although our cash balance remains strong, additional development capital provides us with flexibility to effectively execute on our strategic growth plan."
RBS Citizens, N.A., acted as lead lender and administrative agent.