One Group Hospitality drew full amounts available under delayed draw facility

In a regulatory filing last night, ONE Group Hospitality disclosed that on December 28, 2022, the company borrowed $50M of the delayed draw term facility and repaid $5M on its revolving credit facility. "The company drew the full amounts available under the delayed draw term facility to increase its cash position and preserve financial flexibility and may use the borrowed funds for accelerating restaurant openings and capital expenditures, and potentially to expand the company’s share repurchase program or acquire additional restaurants or for other purposes permitted by the credit facility. The proceeds from the draw are currently being held on the company’s balance sheet. The drawn principal accrues interest at a rate equal to SOFR plus 6.50%. Cash balances held by the company are currently earning interest income at approximately 3.75% and may change from time to time. The delayed draw amount must be repaid on August 6, 2026, unless repayment is accelerated as provided in the credit agreement or at the company’s option," the filing stated. As previously disclosed, ONE Group Hospitality and certain of its subsidiaries, Goldman Sachs Bank USA, as collateral agent, and Goldman Sachs Specialty Lending Group, L.P., as administrative agent, entered into a fourth amendment to credit and guaranty agreement dated December 13, 2022, which among other things provided for a $50M delayed draw term facility available to draw for twelve months.