LAKEWOOD, Colo. — Einstein Noah Restaurant Group has announced the finalization of the redemption schedule for its $57 million in Series Z Preferred stock held by Halpern, Denny & Co. The company has agreed to minimum redemption amounts and dates through June 30, 2010. In addition, the company also amended its existing senior secured credit facility to expand the options for the redemption of any remaining Series Z Preferred Stock on June 30, 2010.
As part of the agreement, Einstein Noah's existing senior secured credit facility has been amended and expanded to permit subordinated debt and replacement equity in the form of another issue of mandatorily redeemable preferred stock, provided that neither the replacement subordinated debt nor the preferred stock is payable or redeemable prior to Dec. 28, 2012, which is six months after the due date of the credit facility.
The redemption payments include an additional redemption amount that is 250 basis points higher than the highest rate on funded debt for any unredeemed shares of Series Z Preferred after June 30, 2009. The highest rate on the company's funded debt is currently 5.52 percent.
