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WEN » Topics » Wendy’s and its subsidiaries, and ARG and its subsidiaries, are subject to various restrictions, and substantially all of their non-real estate assets are pledged subject to certain restrictions, under a Credit AgreementThese excerpts taken from the WEN 10-K filed Mar 13, 2009. Wendy’s and its
subsidiaries, and ARG and its subsidiaries, are subject to various restrictions,
and substantially all of their non-real estate assets are pledged subject to
certain restrictions, under a Credit Agreement.
Under an
amended and restated Credit Agreement entered into as of March 11, 2009 by
Wendy’s and its subsidiaries and ARG and its subsidiaries (collectively, the
“Borrowers”), substantially all of the assets of the Borrowers (other than real
property) are pledged as collateral security. The amended and restated Credit
Agreement also contains financial covenants that, among other things, require
the Borrowers to maintain certain aggregate leverage and interest coverage
ratios and restrict their ability to incur debt, pay dividends or make other
distributions, make certain capital expenditures, enter into certain fundamental
transactions (including sales of assets and certain mergers and consolidations)
and create or permit liens. If the Borrowers are
unable to generate sufficient cash flow or otherwise obtain the funds necessary
to make required payments of interest or principal under, or are unable to
comply with covenants of, the Credit Agreement, then they would be in default
under the terms of the agreement, which would preclude the payment of dividends
to Wendy’s/Arby’s Group, Inc., restrict access to their revolving lines of
credit and, under certain circumstances, permit the lenders to accelerate the
maturity of the indebtedness. See Note 10 of the
Financial Statements and Supplementary Data included in Item 8 herein, for
further information regarding the Credit Agreement.
Wendy’s and its subsidiaries, and ARG and its subsidiaries, are subject to various restrictions, and substantially all of their non-real estate assets are pledged subject to certain restrictions, under a Credit Agreement. Under an amended and restated Credit Agreement entered into as of March 11, 2009 by Wendy’s and its subsidiaries and ARG and its subsidiaries (collectively, the “Borrowers”), substantially all of the assets of the Borrowers (other than real property) are pledged as collateral security. The amended and restated Credit Agreement also contains financial covenants that, among other things, require the Borrowers to maintain certain aggregate leverage and interest coverage ratios and restrict their ability to incur debt, pay dividends or make other distributions, make certain capital expenditures, enter into certain fundamental transactions (including sales of assets and certain mergers and consolidations) and create or permit liens. If the Borrowers are unable to generate sufficient cash flow or otherwise obtain the funds necessary to make required payments of interest or principal under, or are unable to comply with covenants of, the Credit Agreement, then they would be in default under the terms of the agreement, which would preclude the payment of dividends to Wendy’s/Arby’s Group, Inc., restrict access to their revolving lines of credit and, under certain circumstances, permit the lenders to accelerate the maturity of the indebtedness. See Note 10 of the Financial Statements and Supplementary Data included in Item 8 herein, for further information regarding the Credit Agreement. | EXCERPTS ON THIS PAGE:
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