El Pollo Loco 2015 Annual Report Download - page 85

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Table of Contents
EL POLLO LOCO HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Minimum future rental income for company-operated properties under noncancelable operating leases, which is recorded on a straight-
line basis,
in effect as of December 31, 2014, is as follows (in thousands):
6. NEW CREDIT AGREEMENTS
On December 11, 2014, the Company refinanced its debt, with EPL, Intermediate, and Holdings entering into a credit agreement with Bank of
America, N.A., as administrative agent, swingline lender, and letter of credit issuer, the lenders party thereto, and the other parties thereto, which
provides for a $200 million five-year senior secured revolving facility (the “2014 Revolver”). The 2014 Revolver includes a sub limit of $15
million for letters of credit and a sub limit of $15 million for swingline loans. At December 31, 2014, $7.4 million of letters of credit were
outstanding and $27.6 million was available to borrow under the revolving line of credit. At December 31, 2014, the previous letters of credit
related to the 2013 Term Loans remained outstanding. These letters of credit were released subsequent to year end. The 2014 Revolver will
mature on or about December 11, 2019.
Borrowings under the 2014 Revolver (other than any swingline loans) bear interest, at the borrower’s option, at rates based upon either LIBOR
or a base rate, plus, for each rate, a margin determined in accordance with a lease-adjusted consolidated leverage ratio-based pricing grid. The
base rate is calculated as the highest of (a) the federal funds rate plus 0.50%, (b) the prime rate of Bank of America, or (c) LIBOR plus 1.00%.
For LIBOR loans, the margin is in the range of 1.75% to 2.50%, and for base rate loans the margin is in the range of 0.75% and 1.50%. The
margin is initially set at 2.00% for LIBOR loans and at 1.00% for base rate loans until the delivery of financial statements and a compliance
certificate for the period ended March 25, 2015. The interest rate was 2.16% at December 31, 2014.
The 2014 Revolver includes a number of negative and financial covenants, including, among others, the following (all subject to certain
exceptions): a maximum lease-adjusted consolidated leverage ratio covenant, a minimum consolidated fixed charge coverage ratio, and
limitations on indebtedness, liens, investments, asset sales, mergers, consolidations, liquidations, dissolutions, restricted payments, and negative
pledges. The 2014 Revolver also includes certain customary affirmative covenants and events of default. The Company was in compliance with
all such covenants at December 31, 2014. See Note 1 for restrictions on the payment of dividends under the 2014 Revolver.
Transaction Costs
Transaction costs of $1.5 million were incurred in connection with the December 11, 2014 refinancing and were capitalized and are included in
other assets in the accompanying consolidated balance sheets and the related amortization is reflected as a component of interest expense, net, in
the accompanying consolidated financial statements.
Maturities
There are no required principal payments prior to maturity for the 2014 Revolver.
81
For the Years Ending
December 31, 2015
$
204
December 30, 2016
104
December 28, 2017
90
December 27, 2018
90
Total future minimum rental income
$
488