Good Times Restaurants, a US-based operator of Bad Daddy’s Burger Bar and Good Times Burgers & Frozen Custard concepts, has expanded its debt facility.
The amended credit agreement with Cadence Bank has increased the facility from $12m to $17m.
According to the company, the increased capital will be combined with its operating cash flow to fund the development for fiscal 2019 and 2020.
It will also be used to maintain a relatively conservative amount of debt in the company’s capital structure.
Good Times Restaurants chief financial officer Ryan Zink said: “The successful development of nine Bad Daddy’s restaurants during fiscal 2018 has laid a solid foundation on which we expect to continue our development, having previously announced our intention to open seven to nine additional Bad Daddy’s during fiscal 2019.
“Cadence Bank’s significant experience in restaurant lending has allowed us to again choose them as a preferred partner in sourcing capital to further develop the Bad Daddy’s concept.
“We expect the expanded facility combined with our expanding operating cash flow to provide adequate capital to fund all of our development for fiscal 2019 and much of our development for fiscal 2020 while maintaining a relatively conservative amount of debt in our capital structure.
“This amendment improves upon the already attractive pricing of the existing agreement, provides a larger commitment, and extends the maturity of the loan to the end of calendar 2021.”
Good Times Restaurants president and CEO Boyd Hoback noted that the company is planning to open two Bad Daddy’s restaurants during this quarter, starting with its first location in Decatur, Georgia on 12 November.
The company has also commenced the construction of the first restaurant in Nashville. It will also open restaurants in Huntsville and Birmingham, Alabama, as well as other markets in North and South Carolina next year.