Potbelly Corporation has entered into a definitive securities purchase agreement with existing and new investors to raise approximately $16 million. The closing is anticipated to occur on February 12, 2021, subject to customary closing conditions.    

Potbelly also announced that it has reached an agreement in principle with its lender, JP Morgan, to amend its existing senior secured revolving credit facility. Upon execution of the amendment, Potbelly is expected to have a senior secured revolving credit facility of $25 million that matures on January 31, 2023.  

Bob Wright, President and Chief Executive Officer of Potbelly commented, “Today is great day for Potbelly as we enhance our ability to achieve ‘Traffic-Driven Profitability’ through the five strategic pillars that are the core to the company’s growth. These include: 1) Craveable, Quality Food at a Great Value, 2) People Creating Good Vibes, 3) Customer Experiences that Drive Traffic Growth, 4) Digitally-Driven Awareness, Connection and Traffic, and 5) Franchise-Focused Development.   As 2021 progresses, we expect to see our customers increasingly enjoy Potbelly’s offerings as the pace of COVID-19 vaccinations and dining-room re-openings accelerate across our markets. Thus, the proceeds from today’s offering and the revised credit facility will help bolster our balance sheet and provide the necessary capital to both boost the brand and invest in our future as we return to growth.”

William Blair & Company is acting as the sole placement agent for the Offering.