Potbelly Corporation Announces Replacement of Short-Term Revolver with $25 Million Five-Year Term Loan
New term loan provides Potbelly financial flexibility to support the Company through next phase of growth
CHICAGO, Feb. 10, 2023 (GLOBE NEWSWIRE) — Potbelly Corporation (NASDAQ: PBPB) (“Potbelly” or the “Company”), the iconic neighborhood sandwich shop, today announced it closed on a new $25 million senior secured term loan (the “Facility”) that matures on February 10, 2028. This new term loan replaces Potbelly’s previous $20 million short-term revolver.
Potbelly Corporation, known for its delicious sandwiches and friendly neighborhood atmosphere, has taken a significant step towards securing its financial future with the announcement of a new $25 million five-year term loan. This move provides Potbelly with the financial flexibility needed to support the Company through its next phase of growth.
The senior secured term loan, which matures in 2028, will allow Potbelly to invest in strategic initiatives, expand its market presence, and further enhance the customer experience. By replacing its short-term revolver with a long-term loan, Potbelly can better manage its debt obligations and focus on driving sustainable growth.
According to Alan Johnson, CEO of Potbelly Corporation, “We are pleased to announce the closing of this new term loan, which reflects our commitment to strengthening our financial position and supporting the long-term success of our business. This additional liquidity will enable us to pursue our growth objectives and continue providing our guests with the high-quality food and service they have come to expect from Potbelly.”
With the new term loan in place, Potbelly is well-positioned to navigate the challenges and opportunities that lie ahead. By securing this financing, the Company can confidently move forward with its expansion plans and capitalize on emerging trends in the market.
Investors and industry analysts alike are keeping a close eye on Potbelly Corporation as it embarks on this new phase of growth. The Company’s innovative approach to menu development, commitment to customer satisfaction, and strong brand recognition make it a formidable player in the competitive fast-casual dining sector.
Impact on Me
As a customer of Potbelly Corporation, the announcement of the new $25 million term loan may not have a direct impact on my dining experience. However, knowing that Potbelly is taking steps to strengthen its financial position can provide reassurance that the Company will continue to thrive and deliver high-quality food and service in the long run.
Impact on the World
The replacement of Potbelly’s short-term revolver with a $25 million five-year term loan signals the Company’s commitment to long-term sustainability and growth. In a rapidly changing market environment, this move positions Potbelly to remain competitive, create jobs, and contribute to the overall economic growth of the communities it serves.
Conclusion
Overall, Potbelly Corporation’s decision to secure a new $25 million term loan reflects its dedication to financial stability and future growth. By leveraging this financing to support its strategic objectives, Potbelly is well-equipped to navigate the ever-evolving landscape of the fast-casual dining industry and continue delighting customers with its iconic sandwiches and warm hospitality.
