Potbelly (PBPB) Enters New $30M Credit Facility

February 13, 2024

Source: Street Insider

Potbelly Corporation (NASDAQ: PBPB) today announced that the Company has closed a new $30 million revolving credit facility (the “Facility”) that matures on February 7, 2027 led by Wintrust Bank.

Under the terms of the new Facility, the Company achieved a 600-basis point reduction in the currently applicable interest rate margin relative to the prior term loan. The Facility currently bears an interest rate of SOFR + 325 basis points (as compared to an interest rate of SOFR + 925 basis points under the Company’s prior term loan) with the potential applicable interest rate ranging from SOFR + 375 basis points to SOFR + 275 basis points dependent upon certain leverage ratios achieved by the Company. The new Facility is expected to result in approximately $2 million of annual net cash interest savings.