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Red Robin Completes Refinancing to Strengthen Financial Foundation

On October 2, 2026, Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) successfully finalized the refinancing of its secured credit facility, marking a significant milestone for the company. Red Robin, a well-known casual dining chain, aims to bolster its financial foundation and support its ambitious First Choice Plan through this crucial step.

This refinancing comes on the heels of Red Robin's strategic refranchising initiatives, announced earlier on September 1, 2026, which involved the sale of 108 company-owned restaurants, generating approximately $89.4 million in gross proceeds. The company plans to further increase its revenues through ongoing refranchising efforts, with an additional transaction expected to close by the end of its 2026 fiscal year, potentially raising total proceeds to $96 million from 116 restaurant sales.

Details of the New Credit Facility

The newly established credit facility includes:

• - Total Size: $115 million, comprised of a $25 million revolving credit line and a $90 million term loan.
• - Term: The loan has a five-year maturity, expiring on October 2, 2031.
• - Future Growth Opportunities: The company can expand the facility by an additional $20 million, contingent on lender participation in the future.
• - Purpose of Funds: The refinancing will be utilized to repay existing borrowings, cover related fees and expenses, and support ongoing working capital and general corporate needs, including capital expenditures and permissible acquisitions.

Competitive Pricing Structure

The interest rates for both the term loan and revolving credit line will be determined based on the Secured Overnight Financing Rate (SOFR) plus an additional 275 to 350 basis points, depending on Red Robin's leverage ratio, with the initial rate set at SOFR plus 325 basis points.

Leadership Statements

Dave Pace, President and CEO of Red Robin, stated, “This refinancing is a crucial step forward and a top priority under our First Choice Plan. We recognized from the onset that solidifying our balance sheet would require a series of steps. Completing our refranchising initiative was the first move to facilitate this refinancing and now, with this new line of credit in place, we’re set up for further advancements within our company.”

He remarked on the broader implications of this refinancing: “Having a solid financial foundation enables us to operate more flexibly, invest in our restaurant experience, and better support our franchise partners.” Pace extended gratitude to all team members, franchise partners, lenders, and advisors for their invaluable support through this process.

Partners in the Refinancing

The refinancing was orchestrated by JPMorgan Chase Bank, N.A. as the Administrative and Collateral Agent, with Texas Capital Bank serving as the Documentation Agent. Additionally, JPMorgan Chase and U.S. Bank National Association acted as Joint Lead Arrangers and Joint Bookrunners throughout this critical transaction.

About Red Robin

Founded in 1969, Red Robin Gourmet Burgers, Inc. has established itself as a leader in the casual dining sector, serving high-quality gourmet burgers in a family-friendly environment. The company operates through its subsidiary, Red Robin International, Inc., and runs under the trade name Red Robin Gourmet Burgers and Brews. Their menu features a diverse selection of gourmet burgers, salads, appetizers, entrees, desserts, and signature beverages, catering to guests of all ages. With nearly 500 locations throughout the U.S. and Canada, Red Robin continues to build memorable dining experiences around quality food.

As Red Robin advances the First Choice Plan, the company's focus remains on thriving within the competitive casual dining market while enhancing customer satisfaction and operational efficiency.