AMERICAN FAMILY RESTAURANTS SECURES NEW $15 MILLION CREDIT FACILITY FROM THE PROVIDENT BANK.NORCROSS, Georgia--(BUSINESS WIRE)--May 18, 1995--American Family Restaurants, Inc. (AMEX AMEX See: American Stock Exchange : FRI) announced today that it has secured a new five-year, $15,000,000 credit facility from The Provident prov·i·dent adj. 1. Providing for future needs or events. 2. Frugal; economical. [Middle English, from Latin pr Bank, a subsidiary of Provident Bancorp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : PRBK). The $15,000,000 facility consists of a $5,000,000 Senior Term Loan and a $10,000,000 Senior Revolving Line of Credit Revolving line of credit A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. . The interest rate on both the Senior Term Loan and the Senior Revolving Line of Credit is based on the prime rate plus 1.5%. American Family American Family is a photographic artwork exhibition by Renée Cox. See also
1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. existing debt, to provide growth capital for the acquisition of Denny's restaurants, the acquisition/conversion of non-Denny's restaurants and for general corporate purposes. Commenting on the credit facility, Chief Executive Officer, Jeffrey D. Miller, stated: "Our new credit facility with The Provident Bank is an important step for our company as it provides us with sufficient working capital to finance our planned conversions, and to develop and acquire other Denny's and non-Denny's restaurants. The combination of our initial public offering, proposed merger with Denwest Restaurant Corp. and this new facility has repositioned us both financially and operationally, and we expect to announce shortly further details of our overall corporate restructuring." American Family Restaurants, Inc. (AFR AFR African AFR Australian Financial Review AFR Afrikaans (South African language) AFR Air France (ICAO code) AFR Alternate Frame Rendering AFR Applicable Federal Rate ) headquartered in Norcross (Atlanta), Georgia, operates 134 family style restaurants, 78 of which are Denny's, in 12 states in the Midwest and Southeast. AFR has grown since its founding in 1986 through the purchase of existing Denny's and the conversion of other restaurants into the Denny's format. On April 21, 1995, AFR announced that it had entered into a letter of intent to merge with privately-held Denwest Restaurant Corp., an operator of 72 Denny's restaurants throughout the Midwest and West. CONTACT: Edward C. Williams Chief Financial Officer 404/729-1300 or Joseph N. Jaffoni David C. Collins Jaffoni & Collins Incorporated 212/505-3015 |
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