XML 34 R20.htm IDEA: XBRL DOCUMENT v2.3.0.15
Subsequent Events
9 Months Ended
Oct. 02, 2011
Subsequent Events [Abstract] 
Subsequent Events
Subsequent Events

Amended Credit Facility

On October 26, 2011, the Company amended and restated the Credit Facility (“Amended Credit Facility”) to provide additional flexibility in its capital structure. The amendment increased the borrowings allowed to $150.0 million from $75.0 million and extended the expiration to October 25, 2016 from August 30, 2013. Borrowings under the Amended Credit Facility bear interest at a rate equal to either (i) adjusted LIBOR plus an applicable margin as defined in the Amended Credit Facility or (ii) the highest of an applicable margin plus (a) the Federal Funds Effective Rate plus one-half of 1.0%, (b) the Prime Rate as announced by JPMorgan Chase Bank or (c) one-month LIBOR plus 1.5% as defined in the Amended Credit Facility. The Amended Credit Facility bears a commitment fee on the unused portion of the revolver at an annual rate of 0.2%.

The Amended Credit Facility includes customary representations, warranties, negative and affirmative covenants (including certain financial covenants relating to maximum adjusted leverage and minimum fixed charge coverage), as well as customary events of default and certain default provisions that could result in acceleration of the Amended Credit Facility. Specifically, the covenant to maintain a maximum leverage ratio of 2.5:1 has been replaced with a maximum adjusted leverage ratio, as defined, of 3.75:1. The minimum fixed charge ratio, as defined, remains at 1.25:1.

The Amended Credit Facility is guaranteed by the Company's material existing and future domestic subsidiaries.

Share Repurchase Program

On October 17, 2011, the Company's Board of Directors authorized a new share repurchase program under which the Company may repurchase up to $100.0 million of its outstanding shares of common stock from time to time in the open market or in private transactions at prevailing market prices during the period ending December 31, 2013.
Cash Dividends

Based on the Board of Directors' authorization, on October 27, 2011 the Company announced a cash dividend of $0.25 per share which will be paid November 21, 2011 to all shareholders of record at the close of business on November 7, 2011. Based on shares outstanding at October 2, 2011, the total dividend payment will approximate $5.3 million during the fourth quarter of fiscal 2011.

Global Brand Development

During October 2011, the Company signed a development and licensing agreement with Alsea, S.A.B. de C.V., who is developing and operating Bistro restaurants in Mexico, to develop three Pei Wei restaurants throughout Mexico over the next eighteen months. The agreement provides an option for a long-term contract with a commitment to open fifty additional Pei Wei restaurants over ten years. The first location is anticipated to open in Mexico City during the fourth quarter of fiscal 2011.