Red Robin Secures New Credit Facility to Fuel First Choice Plan

The company’s latest financial maneuver follows the sale of 108 restaurants for $89.4 million, with another eight units expected to change hands by the end of the 2026 fiscal year. These divestments provided the liquidity necessary to secure the new agreement, which includes a $90 million term loan and a $25 million revolving credit line. The facility, led by JPMorgan Chase and Texas Capital Bank, carries an initial interest rate of SOFR plus 325 basis points.

President and CEO Dave Pace described the refinancing as a cornerstone of the company’s First Choice Plan. Beyond simply clearing prior debt, the new capital provides the flexibility to reinvest in restaurant upgrades and support franchise partners. With a five-year maturity window, management now has the breathing room to focus on operational improvements and potential acquisitions, marking a transition from the recent period of aggressive asset sales to a phase of strategic reinvestment.