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Ruth's Chris Steak House Announces New Credit Facility; Management Also Announces Inclusion in the Russell 2000 Small Cap Index
ORLANDO, Fla.--(BUSINESS WIRE)--Sept. 30, 2005--Ruth's Chris Steak House, Inc. (Nasdaq: RUTH) announced today that it has closed a new five year, $55 million credit facility with Wells Fargo Bank, N.A., as administrative agent, Bank of America, N.A., as documentation agent, and JP Morgan Chase Bank, N.A. and Wells Fargo Bank, N.A. as co-lead arrangers. Wachovia Bank, N.A. also participated in the syndication. The credit facility also provides for an increase in the revolving loan commitment by an additional $25.0 million at the company's request (for a total commitment of $80.0 million). The company used $38.5 million funded at closing to prepay and retire borrowings under its previous credit facility and to pay related fees and expenses. Management intends to use the facility to fund working capital needs and expansion.
Tom Pennison, Senior Vice President and CFO of Ruth's Chris Steak House stated, "We are pleased to have closed on such a favorable financing arrangement with our underwriting group. Under the terms, we were able to lower our capital costs and expand our ability to borrow development capital. Ultimately, we've strengthened our balance sheet and enhanced our ability to execute our business plan over the next several years."
Management also announced today that Ruth's Chris Steak House will be added to both the small-cap Russell 2000(R) Index and the broad-market Russell 3000(R) Index, after U.S. markets close on September 30.
About the Company
Founded in New Orleans by Ruth Fertel in 1965, Ruth's Chris Steak House, Inc. is one of the largest upscale steak house companies in the U.S., as measured by the total number of company-owned and franchise-owned restaurants, with 90 locations worldwide (two of which are currently closed as a result of Hurricane Katrina). Ruth's Chris specializes in USDA Prime grade steaks served in Ruth's Chris signature fashion -- "sizzling" and topped with seasoned butter. Information about Ruth's Chris is available at www.ruthschris.com.
Some of the statements in this release that are not historical facts, including, without limitation, our ability to execute our business plan over the next several years, are forward-looking statements that involve risks and uncertainties. These statements are based upon our current beliefs and expectations. Actual results may vary materially from those contained in forward-looking statements based on a number of factors including, without limitation, our ability to open restaurants at new locations, the sales at these and our other company-owned and franchised locations, our ability to successfully operate in new markets, the impact of weather including the impact of Hurricane Katrina, the cost of beef, the success of our marketing initiatives, our ability to control other restaurant operating costs and other factors disclosed from time to time in our filings with the U.S. Securities and Exchange Commission (available at www.sec.gov). Investors should take these risks into account when making investment decisions. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update any forward-looking statements.
CONTACT: Integrated Corporate Relations Investor Relations: Tom Ryan or Don Duffy, 203-682-8200 or Media: John Flanagan, 203-682-8200 SOURCE: Ruth's Chris Steak House, Inc.