On March 26, 2026, The Cheesecake Factory Incorporated announced the execution of a Fifth Amended and Restated Loan Agreement with JPMorgan Chase Bank, N.A. as the administrative agent. This new facility provides the company with a $400 million revolving credit line, which includes a sublimit of $85 million for letters of credit and $10 million for swingline loans. The agreement replaces the previous Fourth Amended and Restated Loan Agreement dated October 6, 2022. The new facility is set to mature on March 26, 2031, and includes a commitment increase feature that could allow for an additional $200 million in revolving loan commitments under certain conditions. The interest on borrowings can be based on either the Term SOFR Rate plus an applicable margin or the prime rate plus an applicable margin, depending on the company's choice. The company is also subject to financial covenants, including a maximum net adjusted debt to EBITDAR ratio of 4.25 to 1.00 and a minimum EBITDAR to interest and rent expense ratio of 1.90 to 1.00. The unsecured nature of the obligations under this facility, along with the guarantees from certain subsidiaries, indicates a strong financial backing for the company. This financing is intended to support general corporate purposes, including dividends, stock repurchases, and permitted acquisitions. The strategic move is expected to enhance the company's liquidity position and operational flexibility, which is crucial in the current economic climate.

Press Release distribution

National Press Distribution across U.S. Media. Direct Access to Key Decision Making Editors.